One of the most important functions of any business is the source-to-pay structure that keeps it moving along the way that it should. It is no wonder why s2p consulting is so important. Procurement is the backbone of the company in many aspects. When it comes to such an integral part of the company, why trust it to somebody that may or may not be qualified to get the most out of every transaction?
The Source-to-Pay Concept
Every business owner should already be aware of the procurement function. When we talk about the steps that make up the entire procure-to-pay strategy we only see a small part of the whole strategy. Procurement means, pretty much, “getting.” When a company procures goods and services it usually already has a plan in place where it will get the goods from, or it will improvise and just deal with it.
When it comes to source-to-pay, the source of the goods and services is discovered, acquired, and established in a contract that keeps everything flowing and fair. One of the most challenging steps in the source-to-pay strategy is finding the right sources.
From finding the right sources throughout the contracts, the buying and then paying for the goods and services to satisfying all of the invoices is the entire source-to-pay process from end to end.
Planning the Source to Pay Strategy
Many business owners fail to see the importance of planning a source-to-pay operation. A professional consultant will be able to help and build a perfect strategy based on the unique needs of the business. During the planning phase of an s2p procedure, a trained eye may be able to see things much more clearly than a person that has a limited amount of experience in the procurement industry.
A professional can lay out the plan and show alternative ways for each step in the plan to be carried out in the most beneficial way possible. This way it helps to get the most out of every nickel and dime that goes into the business’s expenses.
Discovering the Ideal Sources
As we have mentioned before, having the right sources can be one of the most crucial elements for a successful source-to-pay strategy. The reason why is that when you acquire healthy, solid sources that will be there with consistent pricing and quality you will stay healthy and solid yourself.
Imagine being able to see which vendors out there are available to you at the best prices, the highest ranks in service and reliability, and the ones that are most likely to bring you a return on anything that you invest from them?
A seasoned source-to-pay consultant will be able to show you how to find the best sources for your business that are the most likely for you to prosper from.
Making Sure the Contracts are Held
As you will learn in your sourcing phase, the vendors that you acquire will give you special deals and pricing depending on whatever agreement you come to in the sourcing phase. These agreements will most likely be in the form of contracts. The problem with getting deals is that the prices that you agree upon might not be available on the website or in the app that you will order your goods and services from. Your consultant will be able to help you make sure that you get the prices and the deals that were promised in the contract. In fact, they can show you a way to ensure your contracts and keep everything in line without having to spend a lot of time and energy making it happen.
Hiring a consultant is definitely recommended when it comes to a process as important as the s2p process is. You can save yourself a lot of time, and even more money. At the cost that you would spend on a consultant, you could end up getting that money and much more back with just some simple adjustments to your existing procedure.