Source-to-Pay Webinar – Extract Here, Available To Listen to Now

Here is an extract from the webinar our Managing Editor Peter Smith led as part of the BravoSolution Real World Procurement Series a couple of months back, titled Is An Integrated Source to Pay Solution Right For You?  You can register free and watch/ listen to the whole session including Q & A on demand here.

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So S2P, as we will call it for the rest of this session, brings together spend analytics, sourcing and contract management, which incidentally are the core elements of what Gartner calls a “strategic sourcing applications suite." But it also includes as part of the same system or platform the core transactional, purchase-to-pay elements – so requisitioning, ordering (probably with a catalogue-type capability as part of that), invoicing and payment. Supplier information management is also included – indeed as we will see, that is a fundamental part of the S2P picture.

Going back to the jargon, here is a picture that describes this quite well. “Source-to-contract” is another bit of terminology you may hear. Source-to-contract plus purchase-to-pay equals source-to-pay!

 

 

So having established what we are talking about, let us move on to the technology in more detail.  We have several options here. One is a fully integrated S2P system which covers all the bases that we’ve mentioned. We would expect this to mean all the different elements link up seamlessly, look and feel the same to users, and information is held only once in the system. The other extreme would be the best of breed – buy all those elements separately, choosing the best fit for you in each case.

What we call an “Integrated hybrid” is often a basic ERP system with some additions bolted on; then we have what to be honest is probably the most common approach, the random mess.

I was talking to a friend recently, a procurement director, and I asked him what his procurement technology platform looked like. “Several different P2P systems inherited through various acquisitions, a different sourcing platform that no-one uses, spend analysis delivered by a big consulting firm as a managed service, a built-in-house contract management database …” and this is a fairly switched-on organisation generally. So I do  appreciate that most of you won’t be starting with a clean sheet of paper here!

What I want to do is just run through the different elements of S2P capability individually in terms of the benefits you should expect to derive from each. Let’s look at six main elements  – spend analytics, sourcing, contract and supplier management, purchase-to-pay, and project and savings management. Then we’ll come on to the advantages – and the issues – around the overall concept of S2P.

(For the rest of this session – before and after this extract – you can watch and listen here).

 

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