Automating the S2P Process Cycle
- devenrandalldevenr
- Aug 2, 2022
- 1 min read
The S2P process cycle comprises several basic steps. Step "0" is the definition of the purchasing organisation structure and processes. It allows a more efficient use of resources and more control over contract performance and relationship with suppliers. Once established, the purchasing organisation structure and processes should be tailored to the specific requirements of the business and its objectives. It is vital to identify and select suppliers that offer products that meet high quality standards and the required innovation levels.
After setting up a S2P process, the next step is to choose the best supplier. The selection process may involve reviewing a large number of documents, inspecting samples of products, and using a scorecard to evaluate a supplier's offerings. This can take weeks, even months. Additionally, there may be multiple suppliers offering similar products and services. In such cases, it is important to assess them all based on different criteria. Automation of the S2P process cycle eliminates this tedious work and subjectivity.
In order to improve efficiency and accuracy, S2P processes should be automated. S2P software helps companies optimize the entire sourcing process from identifying suitable suppliers to procuring products and services. The process also includes the contracting with suppliers, invoicing them, and paying them. With the use of technology, big data, and digital networks, S2P software can streamline the entire process. Moreover, increased procurement visibility can lead to higher sourcing savings. By combining essential procurement activities, businesses can streamline contracts and improve pricing accuracy.
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