The department must find the right supplier, negotiate contracts, reduce spending, and find ways to simplify the buying process. Procurement quality is the responsibility of the procurement division. The S2P processes are essential to keep things running smoothly in many industries. See our in-depth guide to master data management to learn more about its use cases, best practices, and benefits. Below you can find what an S2P process looks like step by step. In addition to these critical tasks, the overall value stream also includes the activities required to support the end-to-end operation, such as vendor and master data management.
monitoring of the supply of required products and services. running demos or PoCs with relevant suppliers. The process begins with specific sourcing strategies to gather the optimal products and services for the company. Source-to-pay (S2P) is the process from selecting a supplier to completing all their payments. This might result in a 1-3% increase in total savings on spend and reduce S2P operation costs significantly. In 2018, BCG estimated that new digital solutions could reduce the end-to-end time for this process by as much as 80% for simple items like office supplies and 40% for complex items like capital projects. Advances in automation can significantly accelerate the source-to-pay processes. Today’s procurement teams are under pressure to purchase products and services faster to satisfy companies’ desire to operate with more speed and flexibility.
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