The way that s2p consultants find ways to cut costs and improve the overall operations of the source-to-pay strategies of businesses across the country is almost astounding. The source-to-pay process for any business is a key factor in the way that funds are spent and used for the entire establishment. It is not surprising to learn that when companies take the time to invest in a solid s2p consultant to help with their procurement needs, they actually end up saving money in the end.
The Strategy of Planning
In the most basic source-to-pay strategy there are four basic steps to a fundamentally successful procurement process.
- Planning
- Sourcing
- Buying
- Paying
Although each step is necessary for the process, the planning phase is probably the most crucial part.
By taking a close look at the way that the procedure is in play and looking into each detail of every step, a professional with a good eye for detail will be able to spot flaws in the process, and also see where a simple tweak could benefit the entire step.
Although we only mention the four basic steps that make up the spine of the general source-to-pay process, each business will have its own unique needs and specifics that a consultant will be able to address and help to optimize.
The Secret of Sourcing
It is no secret that the sources of items have a direct effect on the item itself. If you purchase an item from a bad source, the odds are that the item itself is bad as well. If you purchase another item from a great source, the item will most likely be great as well.
The trick about sourcing is that you have to know exactly who you are dealing with in order to truly get the most out of your vendor. A consultant will show you how to find the perfect sources for your business and thrones that are most likely to be profitable for you. The information will be based on factors that are known about the source and kept over time.
A high-quality consultant will have access to some of the most powerful software on the planet that will have the ability to find and recommend the sources that will help you get the most back out of them.
Ordering and Buying
One of the things that can happen after finding a great source is that after the contracts are signed, and you have made a deal on certain pricing for certain variables, the prices are not updated on the ordering website or app. This is common because when you make deals they are specifically between you and the vendor…not the rest of the public. Because of this, you have to watch out to make sure that you are getting the deal that you agreed to.
A consultant can show you how to make sure that when you agree on a price for a specific item or bunch of items that you pay the correct price, without having to go through a bunch of changes and difficulties. This in itself is a golden value.
Paying for The Goods and Services
In the end when everybody is paid and all of the invoices have been satisfied everybody is happy. Hopefully. A consultant will be able to guide you towards a way to make sure that everybody is taken care of in the quickest, most efficient manner. Sometimes when there are literally thousands, if not millions of transactions things can get a little crazy in the payment sector. With the help of a great consultant, you could learn how to just about automate the whole process so that you won’t have to deal with the headaches at all.
Conclusion
If you take all of the steps that we went through and added up all of the money you could save by optimizing each step of the way you might be surprised at how much you could be keeping for yourself. Between lowered costs with great vendors, cutting down on time and resources, and being able to sleep better at night, it adds up to be quite a bit.
