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Business General How To

6 Advantages Of Using Source To Contract

In the current era of the pandemic, finding solutions in sourcing procurement using S2C software in every industry is more important than ever. As leaders struggle to ensure product supplies are met, they must deal with the impact of the pandemic disruption to protect their businesses. Running a business and controlling operational costs is not easy.

In contrast to the 2008 financial crisis, today, every organization leader is struggling to keep their business in recovery largely by geography (lockdown/travel regulations) with some countries starting to reopen lockdowns while others are enforcing stricter lockdown regulations, many industries are adversely affected some industries are fully operational or capacity is increasing, and others are shutting down the consequences are getting worse.

Revenues in most business sectors have fallen drastically and many have gone out of business making the decision to switch to a sourcing system to a contract that serves to protect against procurement difficulties in every industry is the right decision, because the company’s industrial must continue to run, the solution is to keep costs down existing operational by reducing employee work budgets.

Here are 8 advantages of using source to contract system

1.Spend Analytics

Pull data from your organization’s existing Enterprise Resource Planning (ERP) and Financial Management Systems (FMS) software to cleanse, categorize, enrich, and normalize it. Machine learning and third-party integrations are much more efficient than manual checks subject to human error.

The enriched data is displayed across multiple dashboards that highlight spending spikes, savings opportunities (both operational and financial), compliance issues, and potential risk. Users can drill down and filter the data across multiple dimensions and levels of depth and detail.

2.Project Management

Manage business processes with a customized configurable project management application. Project management software facilitates collaboration with business stakeholders across a range of functions and significantly enhances the quality of cross-divisional collaborative activity and insight into critical KPIs such as time to deliver projects and savings.

Seamlessly conduct purchasing projects with the integration into the e-sourcing and contract management applications. Set up a range of highly configurable project flows, project template forms and project request forms to support your business process activity. Search and report features to quickly gain visibility and track project milestones throughout the organization.

3.eRFx

Automate and streamline the vendor selection process to award RFPs and RFQs in a fraction of the time of a manual approach. eRFx manages risk, increases visibility and improves compliance, all of which result in reduced cycle times and cost savings. Massive quantities of complex data points can be collected and organized to make data-informed business decisions. A library of templates and questionnaires within the platform increases compliance adherence and efficiencies. All historical information is benchmarked for future sourcing events to enhance speed to market and more easily manage supply risk events.

4.eAuctions

Challenge shortlisted suppliers against each other in the highly competitive environment of an e-auction to drive down costs and uncover true market prices. Typical Reverse Auctions take less than an hour to run, meaning that weeks of face-to-face negotiations can be condensed into as little as 30 minutes.

5.Contract Management

Digitize and streamline contract authoring, red-lining, approval and signature processes, while increasing visibility and accessibility of contract data and documents.

Through the use of approved contract clause libraries, automated approval workflows and eSignature functionality, a contract management solution can significantly speed up manual admin-heavy processes and eliminate paper-based elements. Reporting and dashboard functionality provides improved visibility and control of contracts, and expiry reminders help mitigate against costly contract over-runs, please follow to read more.

6.Supplier Base Management

Automate and streamline the supplier on-boarding process by making suppliers responsible for uploading information such as certificates, contracts, accreditations, and other documents through a supplier portal, which expedites risk evaluation and the approval process.

With all the supplier information in one place, your team can ensure all potential and awarded suppliers remain compliant and that accreditations and certificates are up to date; collect ad-hoc information from the supply base to mitigate against disruptions (e.g., COVID-19 disruption); and comply with new laws and regulations (e.g., Modern Anti-slavery Act). You can also monitor supplier performance against agreed KPIs.

Conclusion

Source-to-Contract is a process where Procurement identifies and creates value for their organization. This complex series of business processes includes all upstream Procurement activities, from Spend Analysis and Supplier/Category Management to Sourcing projects and Contract Management.

Sourcing solutions help to generate more business value from Procurement and maximize all your spend management and supplier risk with a seamless, intuitive and collaborative source-to-contract solution.

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