What to Look for When Evaluating S2P Software for Procurement

Selection of procurement software is more than just reading a list of features offered by any such system. It is crucial for procurement professionals to consider the way in which the chosen software integrates the whole process of needs analysis, sourcing, contracting, purchase order generation, goods receipt, and payment. 

In other words, the solution in question must connect all these processes while also offering functionality in terms of visibility, workflows, compliance, spend analysis, etc. Careful consideration of such functionality will help procurement teams determine whether the chosen S2P software will help them integrate procurement processes and meet all their needs.

Start with End-to-End Procurement Coverage

When you thoroughly recognize source-to-pay software, you should know whether the software covers the whole source-to-pay process or just certain stages. The source-to-pay process starts with identifying a need and ends after the completion of all tasks. These tasks can be supplier identification, contracting, purchases, deliveries, or finally making the payment to the supplier.

Examine Sourcing and eAuction Capabilities

Procurement sourcing is a very important part of procurement. Therefore, the software requires to simplify processes related to supplier identification, selection, along with the negotiations. The corresponding features include AI-based RFQ automation, reverse and forward auctions, supplier bidding, scoring and recommendations, and the intake-to-award process.

Another feature is the process transition from RFQs to auctions. Sourcing event scheduling may help with better execution of RFx and auction processes, as these can be scheduled in advance. There are several auctioning strategies for different sourcing needs.

Assess Contract Management

Contracts act as the connection between the supplier selection and procurement processes. Hence, capability to manage contracts becomes important for the assessment of procurement solutions. Proficient management of the contract lifecycle includes the management of requirements, drafting, reviewing, approving, implementing, managing obligations, modifying, auditing, renewing, as well as termination of the contract.  

Assessment should be based on the contract lifecycle management to ensure the performance visibility based on approval time, renewal ratio, compliance ratio, contract leakage, and cycle time.

Check Procurement Workflow Automation

A proper procurement solution will facilitate a systematic approach to daily purchasing activities. One of the factors that should be taken into account when selecting an S2P software solution is the connection between purchasing and sourcing activities with regard to supplier information.

Inquire about the functionality of purchase requisition-to-purchase order automation, instant approval, shopping cart buying, dynamic approval process, and collaboration with suppliers in real-time mode.

Flexible and configurable workflows will assist organizations in managing their approval process as per their requirements.

Review Payment and Invoice Capabilities

The source-to-pay process goes even further, and thus there is a need to consider payment and invoicing capabilities in the procurement software. The capabilities to be considered include invoice processing, payment reconciliation, automatic two- or three-way invoice matching, payment visibility, fraud detection, and audit trail.

Evaluate Vendor Management

Supplier management should cover the entire vendor lifecycle. It includes vendor onboarding, due diligence, vendor performance management, as well as risk management.

Such capabilities can support the procurement team to get accurate information about the vendors, and monitor their risks as well as compliance. The collaboration capabilities will help the procurement team interact with vendors efficiently.

Look for Useful Spend Analytics

The visibility of spending is another vital area that should be considered while evaluating procurement solutions. The necessary capabilities for procurement software in this regard include real-time spend visibility, cost savings opportunities, maverick spending possibilities, AI-based cost savings, benchmarking, and customized reports and dashboards.

Review Compliance, Risk, and Visibility

Assessment of risk and compliance must be considered during the entire procurement process. A solution should be able to assist in monitoring risks, compliance, contract compliance, and audit trails. Information available in one central place can also aid in maintaining visibility and control.

In relation to contract management, a solution with features of contract lifecycle management, including monitoring for compliance, risk analysis, performance reporting, automated workflow, and controlled access to document repositories, can enhance organized contract management. 

Conclusion

When selecting procurement software, it is important to evaluate the ability of this process to manage the S2P software. In the process, it is important to look at such attributes of procurement as sourcing, contracting, purchasing, payment, vendor management, spend analytics, workflow, integration, compliance, and risk management. Ideally, the selected software should be able to manage all these attributes. An integrated solution for procurement software will ensure that there is increased visibility in the procurement and finance processes while eliminating the effort required.

For those procurement firms that need an integrated solution, Procol provides an integrated approach to procurement, contracting, purchasing, payments, vendor management, and spend analysis, all on one platform. Some of the key features in Procol include automation of RFQs using AI, eAuction, contract management, contract renewal automation, workflow approval process, supplier risk analysis, spend analysis, invoice matching, payments, and ERP integration. Through an integrated solution, procurement and finance teams will be able to effectively manage the source-to-pay process in the complex world of procurement.