Determining the right solution to digitalising procurement or upgrading from a typical enterprise environment is not necessarily clear nor straightforward. The range of potential solutions is significant and can encompass the following and more:
P2P (purchase to pay) – automating through technology the process of converting a requirement into a delivery, and subsequently paying or making the command or request to treasury to pay a supplier. This can also be known as requisition to cheque and a range of other names.
S2P (source to pay) – automating P2P as detailed above with the addition of sourcing modules, for instance request for information, quotation and price as well as a range of related solutions
S2C (source to contract) – this builds on S2P and includes the automation of the contracting process, allowing the digital creation, sharing, sign-off and indexed storage of contractual documentation.
Source to Pay Suite – this can encompass all activities involved in the procurement process covering all transactional processes, sourcing processes and risk & supplier management activities. This will typically include e-procurement, e-invoicing, spend analysis, e-sourcing, contract management, supplier management, savings management and programme management to name a few.
Making sense of what is the right approach is further complicated by two further factors, firstly the nature and capability of existing enterprise system (ERP) which is generally focused on financial management and control, and secondly the level of non-conformance in the current process and the likely ROI (return on investment) from the costs of implementation and ongoing software subscription and maintenance.
Odesma’s approach to procurement technology solutioning is founded on a practitioner led approach to procurement best practise coupled with a depth of understanding of both the enterprise and procurement technology solution landscapes. In essence Odesma deploy a solution agnostic approach which reviews procurement maturity in the organisation through Assessor and the ADDS Diagnostic approach, a deep understanding of Process as it applies to procurement and a strong commercial approach to identifying a realistic and substantiated cost benefit analysis both before and after deployment.
Our approach to procurement technology selection and deployment is shown below at a high level:
The commencement of the process is most important, it is imperative that the parameters of the activity are clear, an outline benefit case is scoped and key executive and functional stakeholders as well as user stakeholders are bought in to the strategy prior to solutioning and vendor/partner selection.
Odesma are well positioned, as primarily procurement practitioners, to support the entire strategic, operational and tactical approaches to determining what is needed through to implementing and supporting post implementation.
Just a few quick thoughts on the subject of risk mitigation in the supply chain. As we move forward into the new business as usual this will be front of mind for procurement and supply chain leaders. Supplier vulnerabilities have been exposed through COVID – 19, with...