Source-to-pay, also known as s2p, is an innovative solution that packs the whole procurement process from finding sources to finalizing payment into one streamlined operation. The end result is that everybody that is involved in the process benefits from it. Companies that want to make the very most out of their s2p process will hire an s2p consulting firm to help them with their strategy.
When sourcing, procuring and paying for goods and services is such an integral part of effective business practices, it is no wonder why so many companies are seeking professional consultants.
Starting with Planning
Successful strategies always start with a good plan. When it comes to planning the source-to-pay strategy, it takes a skilled and experienced professional to see where the operation will start, what steps to take when, and how to fulfill the operation with the highest return and best outcome. A great consultant will be able to help you map out the entire operation of your procurement strategy from start to finish and optimize each step along the way.
Choosing Great Sources
Finding and obtaining quality resources is critical when it comes to getting the best for your company. A consultant that has experience in the world of sourcing will be able to help you seek out, compare and choose the best sources that there are available for your company. Most professional s2p consultants will use highly intelligent software to integrate into your source-to-pay strategy. With this software, you will be able to locate suppliers of goods and services that will best suit the needs of your business. Once the sources are located, you will be able to compare the best ones side by side and determine which ones are most likely to be an asset.
Contracts and Commitments
Staying on top of contracts and commitments can be time-consuming and demanding. Say, for example, you got into a contract with a source for a certain amount of money when you purchase a certain amount of goods. This particular deal may not be automatically recognized when you go to make your order. If all of the sources are set up in this way it can become very challenging to go back to each source and revisit the contract. A consultant can provide you with solutions that will ensure that each contract is fulfilled and everybody remains happy. (We mentioned highly intelligent software earlier, and here is another example of how it can be beneficial.)
Invoicing and Payments
When it is time to pay the sources and satisfy outstanding invoices, the process can get a little hectic. A consultant will be able to provide you with insight and knowledge that will allow you to streamline the way that the payment process is implemented. Automated invoicing solutions can help to avoid mistakes, and save a lot of headaches.
Money Saved is Money Earned
With the help of a consultant, you will be able to facilitate the planning stages of your next source-to-pay endeavors without wasting time. After the planning stage, you will have learned how to acquire the best sources for your business. By best, it means the lowest costs with the highest yields in return. The sourcing step alone has the potential to save thousands of dollars in each procurement, but that is only the beginning. Saving time, resources, and energy throughout each step in the process adds up to some large numbers. The cost of wages for employees, the cost of resources lost from using employees that are needed elsewhere. Time and resources equal money. The cost that it will be to hire a consultant could be only a fraction of the money you could save from hiring one.