Whether you run a brick and mortar, an online store, or a service company, one thing is for sure. You will encounter various operational challenges along the way from time to time. Well, procurement is one of those challenges. Without a streamlined procurement strategy, delays can be encountered in the delivery of services and products to your clients. Thanks to modern technology, software programs, and systems dedicated to streamlining procurement are available these days. If you guessed right, the Source to Pay, often referred to as S2P comes in as a handy solution.
What is Source 2 Pay System?
The S2P system uses big data, technology, and digital networks to ensure efficiency in procurement. The process involves locating, contracting, and negotiating with suppliers; and ensuring they are paid for the goods supplied or ordered. Using an S2P system comes with many benefits for organizations and their clients. As the folks over at jaggaer.com/ highlight, organizations that use source to pay systems often save as much as 80% on procurement costs. The system also helps reduce the error rate in procurement processes, which translates into time savings and satisfied clients for the organization. Moreover, there is improve trust and collaboration between business partners, and regulatory compliance becomes easier when compliance is digitalized.
So, how can you go about implementing a successful S2P system? Here are some tips you can take to the bank.
1. Have Clear Goals in Mind
Successful implementation of a Source to pay system begins with clearly laying out the objectives of the project. Well, to many folks, it can be a bit overwhelming, especially if you are rolling out a new source-to-pay solution for the first time. However, having clear goals comes in handy in choosing the right solution as well as partners. That way, you get to implement a system that specifically meets your objectives from sourcing, negotiating, contracting, paying, etc.
2. Choose the Right System
By the power of choice, almost all organizations can describe a Source to Pay system that is best suited to their organizational requirements. Nonetheless, it can still be confusing during implementation. Most S2P system providers may be having ERP integrations on the back end side, thus offering limited integration capabilities. A reliable Source to pay system is one that is capable of streamlining business processes while supporting various technical integrations. Also, it should have an intuitive and user-friendly interface. Another thing, consulting experts during this phase goes a long way.
3. Choose the Right Partners
Working with a partner with a deep understanding of your organizational needs is crucial and comes with plenty of benefits. For example, the technical partners may help in ensuring system configurations and interfaces are running optimally. Others may be well-centered for the backend system implementation for business consulting, helping your team in the process of activation or integrations with other technologies.
4. Put Together Great Team Members
When implementing a new S2P solution, you need to put together a great team of IT and maintenance technicians. Otherwise, the solution won’t be rolled out properly and might bring a lot of confusion to the business processes. This would slow down adaptation or even complete failure. Remember, a Source and Pay System isn’t simply an IT project. Rather, it is more of an organizational project. Therefore, your internal team needs to be aware of this.
5. Prioritize High-Quality Suppliers Information
The quality of the supplier content you are working with matters. As a matter of fact, you should not even implement or deploy any Source To Pay system without conducting a thorough cleansing of your supplier data. It is essential to focus on quality over quantity, especially in this area of business. High-quality supplier data should offer powerful searches while enabling end-users to easily find what they need and make informed decisions. In simple terms, if the system is fed with the right data, then it certainly outputs quality information. So, it is super-imperative to enrich the content by working closely with your suppliers.
6. Make a Deployment Plan and Follow It Keenly
Truthfully, deploying a Source To Pay solution comes with a lot of excitement. You may be tempted to rush the process, which could lead to huge problems. Therefore, it is crucial to set realistic timelines when deploying a new source-to-pay system. You should be aware that it takes time, patience, and attention to detail to efficiently and successfully deploy a new S2P solution.
Finally, success is easier achieved through smaller accomplishments. The solution may also require thorough testing before going live for stronger adaptation as well as user experience. Nonetheless, investing in a fully tried and tested solution for your business could help save your precious time and money. The above tips should help you out in implementing an S2P and seeing it through to success.