Whether you have just implemented a new Source to Pay system, or have been operating a system for some time, you will want to know how you are performing against the targets you set in your business case. To get the full return on your investment, you need to measure how you are doing, take remedial action and put in place mechanisms to continuously improve your operations.
Understanding your goals
If you have recently implemented a new Source to Pay system, it is time to look again at what you planned to achieve. Use industry benchmarking to define your KPIs, but don’t overcomplicate them. They should be easy to measure and maintain. Be flexible and willing to change targets. Set out a roadmap for performance management, with measurable performance indicators and plan for a continuous improvement cycle.
Six Steps to success
The following 6 steps will help you see how you are performing as an organisation and focus on the actions that will bring the most benefit.
1. Review your Target Operating Model
Target Operating Models (TOM) are a living thing and should be reviewed periodically to reflect the ever-changing circumstances facing an organisation, never has that been truer than in 2021. Review insourcing and outsourcing business cases and ensure that sufficient resources are in place to enable the business to grow.
2. Prioritise your digital footprint
Digitising the procurement process accelerates the pace of your business, reduces costs, improves compliance, and optimises resources while improving both employee and supplier satisfaction. Understanding how far you are on this journey will enable you to set priorities for future digitisation, or to fine-tune the capabilities you already have.
3. Quantify the returns on your investment
Looking at the cost of the procurement function can drive savings within your Purchase to Pay processes. Understanding that technology on its own is not the solution, and what we do with the technology, particularly the intelligence it can provide, can deliver valuable insights.
4. Don’t overlook change management
You will have included change management as part of your implementation project, but it is never too late to address or revisit this subject. Since change is a constant feature of any business, there are always reasons to address the challenges this brings to individuals. Identifying changes and preparing, supporting, and helping people to successfully implement them is vital.
5. Optimise your maintenance process
Any system and its associated processes will benefit from effective maintenance, including supplier enablement, optimised sourcing, payment terms, release management. Where resources are scarce, Xoomworks can help with all these initiatives.
6. Continually optimise your systems
Optimisation ensures your solution is continually improving. It focuses on specific areas that, if addressed, would significantly improve the level of compliance and efficiency. If you don’t analyse your options, the chances are you’re not going to be able to make informed decisions and realise potential benefits. Xoomworks provides XoomTune, bringing you a monthly report which highlights the steps to take to improve your adoption of the system, reduce risks, increase compliance and improve reporting.
Embedding continuous improvement
Since performance management and continuous improvement are ongoing, this process doesn’t end as such. To assess the results of the exercise and make sure that continuous improvement is embedded for the future, download our eBook as we set out some steps you can take to begin measuring performance management and embedding continuous improvement processes in your business.
Whatever your reasons for focusing on performance management, Xoomworks can help you get visibility of where you are on your journey, drive growth, improve efficiency, increase profitability, and maintain the momentum for continuous improvement.
This eBook is the 12th chapter of “The Ultimate Guide on Source to Pay Implementation”. The guide is a 12-part series developed by Xoomworks Procurement experts to help companies on their procurement transformation journey. Click here to view our 12-part guide.