Whether you are the type of business professional that agrees with it or not, many successful companies rely on p2p consulting to get the most out of every penny that they spend during their procurement process. It turns out that many business owners are experts at whatever their businesses are, but not at procurement. It may be a hard pill to swallow for some people, but, hiring a professional to help could save a company a lot of money.
Source to Pay vs. Procurement to Pay
If you don’t already know the difference between source-to-pay and procurement-to-pay it is a good indication that you might already need a consultant to help with procurement issues. Generally, procurement-to-pay is once the sources have been obtained and secured, the process is to order the goods and services, then pay for them. Source-to-pay, on the other hand, is when you have to find the appropriate sources for goods and services, then go through the rest of the steps between finding sources, implementing contracts, ordering the goods and services, then finally, paying for them all and satisfying the inovies.
Where a Consultant Can Help
When you hire a high-quality consultant they will automatically know the difference between s2p and p2p without you having to explain. They can take a look at the structure of your procurement strategy that is in place and be able to determine where improvements can be made, and where money can be saved.
Believe it or not, there are companies that allow thousands of dollars to flow out of the company on a regular basis because they have automatic payment plans in place for things that they are buying twice. A consultant can pinpoint where money is being wasted, and direct your business in the direction of a more profitable solution.
Planning for Effect
One of the most crucial states in the source-to-pay strategy is to plan the entire operation out before it ever happens. A professional consultant that knows the ins and outs of the procurement world can help to lay out a thoroughly constructed plan that will help the company get the most out of every single cent that is spent.
Sourcing the Vendors
Discovering the appropriate vendors in order to source the goods and services that your company depends on in order to conduct business is an art. Sometimes the sourcing aspect of the entire possess is not appreciated enough to get even a second glance from somebody who already believes that the best plan is already in place. However, it can really pay off to have a second pair of seasoned eyes to look at the sources that you already have established. If you knew that you could cut your costs by at least 5%, would you be willing to at least have a look at what you could do to improve your sourcing strategy?
In many cases, it seems like the right thing to do is simply not change anything and stick to the plans that are already in place. However, this plan might be costing you more money than saving you. A savvy consultant will be able to show you how to use a powerful software platform that will match you up with vendors that will most likely bring your company a return and work out the best for you in the long run.
Conclusion
The truth is that there are literally thousands of ways that a company can save money and be more cost-effective within their procurement strategies. Hiring a professional consultant to come into the process and point out where money is being wasted, and where more money could be kept in the bank is a valuable asset.
