We’ve touched on this subject numerous times, as we believe it should be on the radar for any business that has gone live with a Source to Pay solution. Running regular health checks on your system to make sure it is running smoothly and is still delivering against your original business case is an important exercise for post go-live. Neglecting this, in time, might result in making do with a solution that doesn’t deliver at its full potential.
Companies that have implemented a Source to Pay solution need to understand that the implementation project is just the start of their journey in the utilisation of the new platform. There will be a number of areas that still require an element of fine tuning. There may even be some large process-based decisions that could not be made within the timeframe of the original project. A continuous improvement plan will drive changes within the system and help companies gain an understanding of how to leverage best practice.
The challenge that we see most often, with clients that have implemented a Source to Pay system, is that there is a genuine wish to improve processes but not necessarily the bandwidth to get a complete view of what is happening within the system, thus, no time to obtain complete data to make informed decisions about improvement opportunities.
Whether these are strategic opportunities or simply tactical improvements, if you do not have the ability to consider your options, the chances are you’re not going to be able to make informed decisions and realise them.
What can be done?
Ideally, companies should periodically allocate time to analyse the performance of their Source to Pay system, in detail, so that they are able to make informed decisions regarding improvement opportunities. However, the time stressor comes into play again…
The best option for organisations is to engage with a third party that has procurement and finance expertise, but also knows the technical side of a Source to Pay system. There aren’t many procurement consultancies out there that offer these types of services, but there are a few great options.
By looking at data extracted from our client’s system Xoomworks will analyse where the gaps are and how to quickly and effectively improve processes to further improve return on investment. The key to this is to review real behaviours evidenced from real data from our client’s production system.
Taking it further to Optimisation as a Service
Having a clear view of how your Source to Pay system is performing will help your company to act as quickly as possible to seize improvement opportunities. To enable your company to do this, Xoomworks is taking XoomTune one step forward with a single monthly report with all of these insights, highlighting the steps to take to improve your adoption of the system, reduce risks, increase compliance and improve reporting. We do this by reviewing a number of areas that will provide real value: financial impact, efficiencies, compliance and risk.
Here’s a brief summary on how Optimisation as a Service works:
- Xoomworks would work with you to set up a standard set of reports across several modules within your Source to Pay production instance. These reports would be scheduled to extract the data on a monthly basis.
- We would process the raw data and build a dashboard of key information from which we would review and rate the data. Additionally, we would access your production instance to pull out information that your Source to Pay system has identified itself as areas of opportunity.
- We would then compile all the information into a short report highlighting areas of opportunity that you can easily address to make immediate financial, compliance and efficiency based improvements. This will provide you with actionable information in a single source to drive your continuous improvement activities.
Benefits of Optimisation as a Service
- Improve sourcing savings identification and tracking
- Highlight cash flow opportunities through payment term behaviours
- Identify non-compliant agents
- Identify approval anomalies and risks
- Highlight sourcing activities that are either questionable or could be improved
- Increase efficiencies in handling transactional documentation
- Highlight areas of master data for cleansing and enrichment
- Suggest areas to improve the user content searching experience
- Track your progress on a monthly basis against a set of improvement KPIs
Continually optimising your Source to Pay solution is not optional if you want your company to benefit from the full advantage that comes from using a Source to Pay solution. Most successful companies keep project momentum going to really deliver against the procurement business case, capture savings, improve efficiency and gain control.
If you’d like to learn more about Xoomworks’ Optimisation as a Service leave us a message at [email protected]