PROCUREMENT 101

10 Things to Get Right Before Starting Your S2P Project

Introduction

Launching a Source-to-Pay (S2P) transformation is a significant milestone for any organization. It involves integrating systems, people, and processes to ensure a streamlined procurement experience from sourcing through payment. However, it probably doesn't come as a surprise that careful planning is a requirement if you want to get it right. Before you begin, there are key areas that need to be addressed to ensure success.

At Optis, we've helped numerous organizations navigate their S2P journeys. Based on our experience, here are 10 critical factors to consider before embarking on your project.

 1 

Define Clear Objectives

Before initiating a S2P project, it's crucial to establish well-defined objectives. This includes determining the specific goals you aim to achieve through this transformation. These goals might include:
  • Enhancing efficiency
  • Reducing costs
  • Improving compliance
  • Reducing supply risk
  • Supporting sustainability initiatives
Having clear objectives will help guide decision-making throughout the project. For instance, if cost reduction is a primary goal, you might prioritize features like reverse auctions in your S2P solution. 

 2 

Establish Clear Metrics for Success

Defining clear metrics for success is essential for measuring the impact of your S2P project. Metrics can include:

Cost savings

Contract compliance

Supplier performance

Establishing these KPIs upfront helps to track progress, demonstrate ROI, and guide continuous improvement efforts. For instance, tracking metrics like the percentage of PO flip adoption can measure the efficiency gains from your S2P implementation. A PO flip is the process of automatically converting a PO into an invoice. This functionality is one of the many reasons why to take your organization's source-to-pay process digital.

 3 

Secure Executive Sponsorship

Executive sponsorship is vital for the success of your S2P project. Whether you are aiming to drive organization-wide alignment, communicating the importance of the project, or actively looking to secure necessary resources and budget, it is crucial to have active support from leadership. Strong executive sponsorship can overcome potential resistance to change and facilitate smoother implementation. For more guidance on building a strong business case for your S2P transformation, check out this blog post.

 4 

Assemble a Cross-Functional Team

S2P transformations require input and support from various departments within your organization. A cross-functional team should ideally include representatives from Procurement, Finance, IT, and Operations. This diverse team ensures comprehensive prespectives are considered and minimizes potential bottlenecks during implementation.

 5 

Conduct a Comprehensive Needs Assessment

A comprehensive needs assessment is crucial to identify the specifc requirements of your S2P solution and to uncover potential challenges in your existing procurement processes. Key areas to assess:
  • Pain points in your current procurement process 
  • Systems Architecture Landscape and existing integrations 
  • Opportunities for automating manual tasks 
This assessment helps tailor your S2P solution to your specific needs. For example, if a primary challenge is vendor management, you might prioritize a solution with strong supplier relationship management (SRM) capabilities.

 6 

Choose the Right Software

The choice of S2P software is crucial and requires careful consideration. Key factors you should consider:
Scalability
User experience
Integration capabilites
Functionality depth
Alignment with long-term business strategy
Choosing between a best-of-breed or unified S2P solution
Thorough research and evaluation are essential to ensure the chosen software aligns with your current and future needs. Resources like Gartner Magic Quadrant, Forrester Wave, and Spend Matters Solution Map can help in your evaluation process, however, seeking expert guidance is a more certain way to ensure you are evaluating the factors that will make a difference for your unique needs. Advisors like Optis can help your organization better understand considerations within your specific technological landscape.

Read more about choosing the right procurement software in our Online Guide: Software Buying Tips.

 7 

Plan for Data Migration Early

It is essential to address data quality issues like duplicates, obsolete data, and inconsistencies before migrating data to the new system. For example, cleansing supplier data by eliminating duplicates and standardizing formats is critical. When planning for data migration, here are the key steps to keep in mind:
Data cleansing
Data migration
Data mapping

 8 

Develop a Robust Change Management Plan

Implementing a new S2P system often introduces significant changes to existing processes and tools. An effective change management plan should address the following:
  • Training users
  • Communicating the benefits of the new system
  • Managing resistance to change
  • Monitoring user adoption 
A well-executed change management plan is critical for user buy-in and maximizing adoption rates. If you are unsure where to start with your plan, or need help with how to address the areas listed above, Optis offers tailored S2P change management services. Contact us today to learn more.

 9 

Set Realistic Timelines

Setting unrealistic timelines can lead to project delays and compromises on quality. Close collaboration with your implementation partner is crucial to establish a realistic schedule that accounts for all project phases, testing, training, and potential roadblocks.

10

Evaluate Long-Term Sustainment Needs

Sustainment planning should be integrated from the project's inception. When organizations have a well-defined sustainment plan, it helps ensure the continuous delivery of value from the S2P system. When evaluating what position your organization is in for long-term sustainment, be sure to consider the following success factors:
Internal resources
External consulting support
Processes for ongoing system maintenance and updates
Click here to read more about Perform, Optis' sustainment services.

Conclusion

Embarking on a source-to-pay project can be challenging, but getting the foundational elements right can significantly boost your chances of success. At Optis, we guide organizations through every phase of the S2P journey, from planning to implementation and sustainment. Our deep expertise across a wide variety of industries allows us to tailor solutions that meet your organization's specific needs, helping you avoid pitfalls and maximize long-term value. Whether you need support with strategy, technology selection, or change management, Optis is here to ensure your project's success. Reach out to see how we can help with your source-to-pay transformation.
Co-Author

Rafael Zveibil, Partner

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Co-Author

Amin Moh, Director

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