In a previous blog, we shared what a S2P project entails and how to kick-start it successfully. Now, let’s take it a step further: how do you approach the actual S2P project, and what should you pay attention to?
The sequence of a S2P project
While every Source-to-Pay journey is unique, we typically follow the same steps. A clear process design provides structure and guidance for you and your colleagues.
Before starting, it’s smart to carefully plan how you will structure the S2P project. This can differ based on the type of organization. For larger companies with over 500 employees, the process will require more detailed planning compared to smaller businesses.
Additionally, defining your goals in advance is essential. For example, educational institutions or municipalities have diverse purchasing categories, while service organizations like banks usually deal with fewer categories. By clarifying these objectives, you can prepare your project more efficiently.
It’s also important to understand that a S2P project is not a quick win. It’s an extensive process that requires time and attention, but once completed, the benefits will be significant.
Phases of a S2P project
A S2P project generally consists of several phases, as outlined below.
Project phase
This starts with a project idea, which then develops into a project proposal. As you add scope and an action plan, it evolves into a project plan. This phase includes market research and procurement, usually lasts about two months.
Implementation phase
Multiple elements come together, such as process design, software configuration, staff training, and project rollout. This phase also includes the Go-Live milestone, after which the project's impact is measured and adjustments are made as necessary.
Finalization
In this phase, you determine in advance when the project is considered to be complete, define when the project team will be disband, and how the project will be handed over to the operational team.
Process design and channel strategy
Your process design should align with your goals, ensuring cost savings and efficiency. A clear process structure provides more insight, control, and user satisfaction. Additionally, having a channel strategy is advisable, detailing how different spending types are managed.
Not all organizations use the same types of spending channels. Therefore, an one-size-fits-all approach doesn’t work. The channel strategy should match the type of purchasing—whether it's office supplies, software, raw materials, or hiring personnel. By having a solid channel strategy, you can clearly define who can order what, how, and when operational buyers need to be involved.
Tips for successfully managing your S2P project
With over 15 years of experience in Source-to-Pay projects, we’ve identified several common pitfalls. Here are some tips to help ensure your project's success.
1. Strong Leadership
At S2P & More, we repeatedly experience the effects of a powerful project owner. A good project owner is crucial to the success of the project. He or she does this by having a clear vision of the S2P solution. He inspires the team, carries the S2P story and influences the organisation. He also has courage, for example to take decisions across the chain or to intervene in the project. In this, a good project leader is incredibly important, as he ensures that the client can act forcefully.
2. Use best practices
We recommend using best practices. Nevertheless, they may fade into the background during the project. We regularly see this, for instance, when setting up software applications. The process then ends up being less efficient than expected. That is why we recommend not reinventing the wheel, but to delve into the best practices that already exist. And to continue using these best practices throughout the S2P project.
3. Constant monitoring
We recommend keeping a close watch after the project goes live. We often see companies thinking, "The project is live, so we're done and don’t need to pay attention anymore." This can lead to lower satisfaction than at the start of the project. That’s why it’s crucial to continue fine-tuning the project after it goes live. This ensures that the project not only succeeds, but continues to do so.
Professional support for your S2P project
At S2P & More, we have years of experience in supporting Source-to-Pay projects.So we have the knowledge to avoid pitfalls and adjust the project at the right moments. Do you want to be sure that your S2P project runs smoothly and thatyou achieve the best results? We can support you in this. Want to know how? Get in touch.