Source-to-Pay (S2P) deployment projects are a large undertaking for any organization. These initiatives require a large resource investment, so there are high expectations on value delivery. There can be pressure to complete the project quickly leading many organizations to dive right into the deployment, which can cause challenges and risks to project delivery.
Imagine this common scenario:
The Strategic Sourcing group has spent hundreds of hours creating savings for the organization. All year you have heard about the forecasted savings, but when those negotiated dollars do not reach the P&L, questions arise over why the savings were not realized. What happened?
Organizations can equip their sourcing professionals with several tools, such as creating standard terms and clauses to expedite the process and establishing an accessible contract repository (see previous blog "Retaining Value Through Contract Management” for more information on these topics). While the team can utilize these tools in the negotiation and drafting of the contract, they are not present in everyday purchasing transactions to enforce the purchasing terms.
Much like people, organizations can feel like a fish out of water. This typically happens when employees take on tasks they cannot complete successfully or efficiently. Such situations lead to the rise of Business Process Outsourcing (BPO).
BPO initially started in larger organizations where third-party contractors were hired to complete tasks or processes that were not part of the organization's core business. As business evolved, BPO developed into the outsourcing of large-scale operations and at times entire departments. This activity was typically a quick, reactive measure with a single focus of cost cutting.
How many times have you worked in a setting where you were the end of the line of a long, multi-department initiative? All of the workflows and processes linked together and each employee along the way had time to fully complete tasks. This well-oiled business machine created an easy, almost automatic, response from you to quickly close the loop.
This is a nice story and every employee’s dream. But realistically, when the initiative reached your desk, the well-oiled machine had probably already broken down somewhere along the way and lost a gear or two. Within Nitor Partners’ 8-Element Procurement Transformation Process, the seventh element, Invoice and Payment, helpsclosethe loop.
That huge tree in your backyard has caught a disease and is infecting the surrounding trees. It needs to come down. While it seems like a straightforward task, (all you have to do is grab an axe and a plaid shirt) in reality, there are so many details you have to consider - dust, falling branches, whether or not the tree is already leaning in one direction, how far the tree will fall - and this is all before you even pick up your axe to start chopping.