Successful companies around the world are starting to take an interest in s2p consulting practices. As the business world continues to evolve and become more dependant on technology, there are many new and exciting platforms available that have the ability to catapult a business upward to the next level of excellence. What enterprises all over the globe are learning is that the source-to-pay process can change everything in one cycle if it is done right.
Table of Contents
What is S2P?
S2p is also known as source-to-pay. It is the entire process that a company implements in order to find sources, order them, and pay for them. Some businesses use a procure-to-pay process, which has fewer steps. In the source-to-pay process, the company discovers and acquires high-quality sources for the goods and services that they depend on in order to do business.
The S2P Steps
The source-to-pay process can be broken down into four basic steps. Although every business structure will have its own unique needs and specifications, all businesses that require a source-to-pay process have one thing in common. They need goods and, or, services. As easy as it may seem to acquire all of the goods and services until you take a close look at the way things work, you won’t understand. The four basic steps that facilitate the source-to-pay process are:
- Plan
- Source
- Buy
- Pay
Essentially each business that sticks to these basic steps, will have a better understanding of how it all works and the best way to get the most out of each transaction that happens during the process.
The S2P Consultant’s Role
The first thing that a great consultant will do is to make you aware of the above-mentioned steps of the process. They will take the time to explain each one and describe how each is important to the overall health of the business.
Planning
The first step in the process is the planning step. This is the most important part. It is in the planning phase that you will be able to take an overall look at your process and map out each step of it. A consultant will be able to discover and identify possible cogs in the operation so that you can put a stop to problems even before they happen. Planning out the entire operation might not be completely possible because of the unknown factors in each step, however, you can get a good idea of what needs to be done, and how to go about doing it all.
Sourcing
Although the planning step is the most important, the sourcing step is the backbone of the entire system. A carefully articulated sourcing operation can make all of the difference in the world when it comes to discovering the vendors that will best suit the needs of your business. For example, it can save a company a lot of money if they choose a source that will give them a generous price break for a certain number of orders. A great s2p consultant will show you the best ways to find what sources will work best for you and give you a selection of candidates based on the needs of your company.
Buying and Paying
Buying and paying may sound like the same thing but there are substantial differences in the procurement world. When you buy something it is more like choosing something and putting it into the cart. One of the problems that many companies run into during the buying process is that sometimes the deals that were made with some of the vendors in the sourcing step are not implemented into the website or catalog that they order from. A savvy consultant will know how to spot these issues and put a stop to them before you actually pay the money for them. They will in turn be able to show how to avoid losing big money behind breached contracts.
Conclusion
The way that S2P consulting works is that you, as a business owner, need to make the decision to hire one and see where your process can be improved. Once you do that, you bring the consultant in and they will walk you through the steps and show you how to get everything that you can from your procurement process, and then some.