The procure-to-pay process can be rather challenging at times and if you don’t know all of the possible angles that could save you money in the end, you could also be missing out on some extra cash. Although the thought of hiring a p2p consultant might not sound like a viable solution, if you take a look into the whole of your existing process, you might be surprised to find places that could use a lot of improvement, and areas that could be leaking money away that could otherwise be in your pocket.
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Looking Beyond Procurement
Acquiring the appropriate sources for the goods and services that your company needs to procure can be a game-changing strategy in the end. Hiring a consultant can help you to strategize the way that you find and secure your sources. Being able to plan out your procurement steps from the sourcing point through the final payment process makes a huge difference when you have a professional pair of eyes to see the pros and cons of each potential source. Topics to consider when finding a great source are:
- Does the source have a reliable record?
- Will the source be beneficial?
- Can the source increase revenue?
- How does the source match up against other sources?
If you are currently paying upwards of $20 more than you would be for something else that is just as good, if not better, wouldn’t it be a good idea to change sources?
Comparing the Source Numbers
If you do not already have access to the numbers that will show what vendors and suppliers are better and more likely to bring a profit to your company, hiring a consultant will help. Artificial intelligence-driven technology is available for companies to use and benefit from, but the software is not always easy to use. With the help of a procurement-to-pay consultant, it is possible to see the way that your current sources could be more beneficial to you and to find new sources that will give you even more.
Source-to-Pay vs. Procure-to-Pay
A p2p consultant will be able to become your s2p consultant as well. The main difference between source-to-pay and procure-to-pay is that in the s2p process there is an extra set of steps that set the precedent for the whole process. Procurement is obtaining the resources that the company has a demand for, but sourcing is finding the sources, then procuring them. The source is the root of the process. Taking a look at the steps in the source-to-pay process might give you a better idea:
- Planning
- Sourcing
- Procuring
- Payment
In the planning stage, the company will take a look at the demands and the needs of the establishment and plan out the best way to obtain them and the steps necessary to get the items delivered and paid for.
In the sourcing stage, the company will evaluate the sources that are available for the demands of the company and selectively decide on the best ones to use based on information that tells how valuable and reliable each source really is.
In the procuring stage, the company will obtain, or buy, the goods and services that are provided by the established sources and take the appropriate steps to have them delivered or implemented.
In the payment stage, the company will pay the amounts due to the vendors and satisfy all of the outstanding invoices.
How a Consultant Pays Off?
It is in the details of each step of every business that an expert can see profits and savings. A consultant can point you in the correct direction that will ultimately save money and add value in the end. How it pays off is that when the consultant comes in and sees where more money can be saved and how many more dollars can stay in the profit area of the company you get to keep all of that extra money, which will most likely be much more than enough to pay for the consulting services. In the end, if you have more money than you did, to begin with, not hiring a consultant could cost you more.