Source To Pay: Finding The Right Solution For Your Business

As businesses look to future-proof their business and continue their digital transformations, a greater focus is being put on the finance and procurement processes – in particular Source to Pay automation. With a range of different technology solutions out there from Basware to Coupa to SAP it can be hard for businesses to know which Source to Pay solution is going to be right for them. At Valtatech, we want to use our expertise in over 70 source to pay automaton and transformation projects to help businesses to drive measurable value from their finance and procurement operations. In our work we not only implement Source to Pay automation platforms but also work with businesses to help them understand their existing processes, their future-state processes and which technology would help them to achieve their future state.

In this article we share some of the technology considerations organisations should be factoring in when deciding on their Source to Pay solutions.

Understand your current processes

First things first, you need to understand how your current processes are working and what requirements your stakeholders have. Conduct an in-depth analysis of current business requirements through key stakeholder interviews and current process reviews. This delivers valuable insights and resources such as:

• Key insights into current procure to pay processes
• Identification of key pain points
• Identification of key levers to drive user adoption
• Identification of key areas and drivers for financial return on investment
• Identification of quick wins and longer-term development areas
• Current state technology landscape map across Source to Pay processes

Map out your future processes

Utilising the insights and resources from the current process review, you can then start pulling together a clear and articulated vision of what the future processes will look like to inform resource and business planning processes. Additionally, from this process you should be able to produce clear and articulate technology requirements.

Assessing the Technology

Using the technology requirements garnered in the future processes you have a baseline to asses different source to pay solutions to deliver your to-be requirements. Typically, you should be assessing the following functional areas:

Supplier Management

• Supplier Information Management
• Manage Supplier Performance
• On/Off Board Supplier in System
• Compliance Management & Audits
• Supplier Enablement
• Track Service Delivery
• Vendor Master Maintenance

Contract Management

• Create Contract
• Execute Contract
• Author Contract
• Administer Contract
• Negotiate Contract
• Approve Contract
• Terminate Contract

Purchasing Management

• Raise Purchase Request (PR)
• Category Enablement
• Approve PR
• Approve Purchase Order (PO)
• Create PO
• Spot Buy & PR to PO Conversion
• Confirm PO
• Receipt PO
• Change PO
• Open PO Management

Payment Processing

• Create & Release Payment in ERP
• Authorise Payment in ERP
• Manage Payment Status
• Update Financial Records
• Release Financial Accrual

Sourcing Management

• Assess Category
• Determine Category Plan
• Prepare & Conduct Market Assessment
• Prepare & Conduct Sourcing Event (RFX)
• Conduct Evaluations
• Select Supplier
• Manage Project (in system)
• Prepare & Conduct E-Auction

Spend Analysis & Reporting

• Spend Analytics
• Benefits Measurement
• Exception & Compliance Reporting
• S2P Process & BPO Performance Reporting
• Identification of Spend Reduction Opportunities

Invoice Settlement

• Capture Invoice
• Invoice Resolution
• Match Invoice
• Create Ready to Pay
• Approve Invoice
• Receipt Non-PO Invoice
• Create Credit Note/Memo
• Create Financial Accrual
• Process FX Invoices

Assessing Source to Pay technology solutions against these functional capabilities mapped against your future processes will ensure that you are selecting the right technology solution for your business.

If you are a Finance or Procurement leader who wants to get visibility and control of their spend, drive measurable business value and achieve efficiency through source to pay automation without disrupting their business operations. Book in a free consultation today.