When it comes to the task of strategizing an effective source-to-pay operation, some savvy business owners are seeking out the professional help of s2p consulting services. One of the main reasons why is the fact that there is so much to gain by bringing in an expert that can point out ways for the business to cut costs and increase revenue. However, many companies are still skeptical about whether or not hiring a consultant will be beneficial. The truth is, hiring a source-to-pay consultant to help with your procurement needs may be the best thing you could ever do for your business.
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What Exactly is S2P?
S2p is the short form of source-to-pay. The main difference between source-to-pay and procure-to-pay is that the source-to-pay process involves strategically securing high-quality sources of goods and services that will best fit the needs of the company. The source-to-pay process is the operation that begins with planning, then sourcing, buying, and finally paying. From sourcing to payment and everything in between is the source-to-pay process.
The Steps of S2P
The steps that make up an effective source-to-pay operation are pretty simple. Since every business will have its own unique needs, the specific steps in each business will vary, however, the four basic steps are:
- Plan
- Source
- Buy
- Pay
It is in the way that each of these steps is facilitated that can make all of the difference in the world. The planning stage sets the whole process in motion and provides a clear outlook on how each step can be optimized for the best results. Each step will have its own properties and details, so mapping the steps before they even take place can not only make the process easier but can also save time and resources.
How S2P Consulting is Beneficial
Since the source-to-pay process can be challenging and even daunting at times hiring a professional to help can bring valuable knowledge and insight to the table. As technology continues to evolve and grow, the use of artificial intelligence is becoming prominent in the business world. A consultant, that has an advanced understanding of the robust software platforms that simplify the process can guide a company to a successful and prosperous source-to-pay operation.
The Sourcing Step
Locating and securing high-quality suppliers is the backbone of the procurement process. When the sources are reliable, everything else falls into place. Having a seasoned consultant to show you how to locate the best sources, then take it a step further to compare the best possible outcomes for each source is very helpful. With software and some creativity you will be able to find the best sources for your needs, then compare them side by side with other sources. You will then be able to choose the best sources based on data that has been collected about them and the probability that they will be the highest and greatest return.
The Buying Step
Once you have found the best out of the best sources, the next step is to order the goods and services that you set out to purchase. One of the largest issues that the procurement process runs into when it is time to buy is that some of the prices that were negotiated in the sourcing contract process are not automatically put into place in the buying process. A consultant will be able to show your company how to automate the buying process as much as possible in a way that will keep the parties on all sides satisfied.
The Paying Step
The final step in the source-to-pay process is paying the source and satisfying all of the invoices. This step may sound like a straightforward task, but when there are multiple vendors with various payment methods there is a lot of room for error. A great s2p consultant will be able to show you the best ways to simplify and automate the process in order to facilitate a smooth, accurate payment operation.
Conclusion
Since the whole source-to-pay process has the potential to shift an entire company in a good direction, or a bad one it is important to understand the way that sourcing, buying, and paying works. The truth about s2p consulting is that it can catapult a business up to the next level of greatness and continue to help it soar higher and higher with each procurement cycle. Sometimes all an organization needs is a little boost of ingenuity from the right place.
