Today’s article is centered on our recent Sailing Downstream: Why “Source-to-Settle” Defines Procurement Transformation in 2015 report, sponsored by Zycus, and available for download here (registration required).
This research report discusses the two principal ways in which Chief Procurement Officers (CPOs) and procurement departments can transform the entire source-to-settle process – that is, from either upstream (strategic sourcing) or downstream (procure-to-pay, or P2P). It argues that there is greater value for the enterprise if CPOs and procurement teams begin the procurement transformation process “upstream” with strategic sourcing processes and then “sail downstream” by linking them with tactical, P2P processes. Performing either one is valuable in and of itself and linking the two is even more valuable. But above all, starting the journey upstream, sailing downstream, and continuing until the journey is complete is the most preferable strategy for source-to-settle transformation.
By downloading this report, readers will learn how:
- Many CPOs and procurement teams find themselves at the vanguard of source-to-settle transformation projects, and how their capabilities and strengths as enterprise influencers position them as the best resource to drive end-to-end change.
- Starting upstream entails starting with basic strategic sourcing processes – like spend analysis, sourcing/eSourcing, contract management, and supplier management – and taking “quick wins” from this process and reinvesting them in highly-capable people and tools to drive further change.
- Sailing downstream to P2P waters and investing in automation tools, like eProcurement and Accounts Payable (AP) automation, that link to sourcing and contracting tools and complete the source-to-settle value chain.
- Even cash-strapped procurement and AP teams can enhance processes by simply linking them; and how incremental investment in technology solutions can result in exponential value for the enterprise.
- True source-to-settle transformation requires that CPOs and enterprises take a holistic view of the process, collaborate with key internal stakeholders (like AP/Finance and IT), and continue the transformation project until completion.
Although the report frames source-to-settle transformation by sailing “downstream”, readers will be advised that there also is value in starting from downstream with P2P transformation and sailing upstream. Much value can be identified within P2P automation and linking processes with upstream stakeholders. As with starting upstream, it is still critical that AP/Finance leaders take a holistic view of the source-to-settle process, engage with key internal stakeholders like CPOs, and see to the project’s completion. That, more than anything else, is the key to a successful transformation project.
Would you like to learn more? Interested readers can download the report by clicking here. Also, we’ll be featuring more on the subject of procurement transformation throughout 2015 on CPO Rising. Stay tuned!
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