If your organisation is considering implementing Source To Pay (S2P), it can sometimes seem like a daunting task. How do you know which system integrator and tool supplier is right for your organisation? And how do you complete the integration with minimal disruption to your business output and team members?
Luckily, there are consultants who are experts in implementing S2P within organisations. At Accelerate, our procurement consultants have many years of Source to Pay implementation expertise using market leading tools. We can also provide advice and support at different points during the implementation journey.
Let’s take a closer look at what S2P is, how it can benefit your business, the potential pitfalls of integration, and how to successfully implement it within your organisation.
What is S2P?
Source-to-pay (S2P) is a process that starts with finding, negotiating with, and contracting the supplier of goods, and culminates in final payment for those goods. S2P software relies on technology, big data, and digital networks to create procurement efficiency.
There are two distinct parts to the S2P process, sometimes called ‘upstream’ and ‘downstream’. The upstream part, consisting of sourcing and contract lifecycle management, is a specialised set of tools used by Procurement. Downstream, from creation of a purchase requisition to payment of an invoice, has the added complexity of interfaces to ERP and a much larger user base of non-specialist users.
Some common concerns when integrating S2P
Organisations considering integrating S2P usually have some concerns around the implementation which may hold them back. Here are some common concerns that we hear about, and some suggested solutions…
The problem: Inherent complexity
S2P implementations are complex. The competing demands of upstream and downstream are hard to manage and the number of interfaces to and from ERP is a major undertaking in itself. The process is driven by data but projects often under-estimate the importance of cleansing their master data, leading to issues during testing and training, and a high volume of support calls post go live. These projects are often global, adding a further layer of complexity.
The solution:
Accelerate consultants have managed multiple S2P implementations and understand how to navigate these challenges. They are familiar with the strengths and weaknesses of the tools and aware of the common pitfalls.
The problem: Working with 3rd parties
Most implementation teams contain a mix of resources from the supplier (e.g. SAP Ariba), a system integrator, and in house staff. The supplier and the SI will be focused on delivering their scope of work as efficiently as possible. Organisations are often concerned that they won’t recognise any potential weaknesses in the solution, or that the supplier won’t be able to meet all their needs.
The solution:
Accelerate can help you evaluate the advice and potential solutions they propose, highlighting any potential weaknesses and possibly finding better alternatives. We will also identify tasks and activities outside their scope that are required to ensure a successful implementation. These may include supporting processes for example.
The problem: Lack of time/resource/expertise in-house
Many organisations understand the benefits of S2P and are keen to implement it, but are concerned that they don’t have the time or expertise to implement it in house.
The Solution:
This is where a procurement consultancy like Accelerate can really help: our consultants are experienced in implementing S2P and can undertake the entire process, from advising on the correct tools and negotiating the contract all the way through to change management and business readiness.
The problem: Concerned about impact on my team
Organisations are sometimes put off implementing S2P because they are concerned about the impact and potential upheaval it could bring to their team.
The Solution:
Change management is the key here. As part of our S2P service, Accelerate offers change management planning and implementation, change impact assessments, change network, and change interventions. This involves stakeholder analysis and management, communications strategy and plan, and a training strategy and plan.
S2P implementation services: how we can help
Our entire S2P offering covers the following services:
– Project design advice: We provide advice on project set-up and common pitfalls to be avoided, based on a distillation of lessons learnt from many implementation projects.
– Tool selection: Evaluation and selection of the most suitable S2P tools.
– Health checks: We can conduct a periodic or one off review of the progress of the project, or a post implementation review of the success of the implementation.
– Project Management Office (PMO): We provide expert project management support, including planning, risk and issue management, reporting etc.
– Support for failing projects: Advice and practical support including interim roles to get a project back on track.
– Business process design: Lead or support business process design work.
– Data analysis: Analysis and interpretation of data to support a S2P implementation.
– Upstream and downstream functional consulting: Functional consultants with upstream (sourcing, contracting) and downstream (P2P) experience.
– Supplier enablement: Lead or support supplier enablement activities to encourage suppliers to trade electronically.
– Catalogue set up: Catalogue creation and maintenance.
– Change management: Full suite of change management activities, including comms and training.
– Business readiness: Support for business readiness activities including cutover, hypercare and the handover to BAU support.
If you are considering S2P implementation and would like some support at any stage of the journey, we can help. Get in touch to see how we can work together.