SOURCE-TO-CONTRACT / PROCURE-TO-PAY / SOURCE-TO-PAY
Addressing strategic sourcing and transactional procurement
Few providers have the scale and expertise to support the full procurement cycle end-to-end
Outsource ALL or PART of your procurement lifecycle
Source-to-Pay is available as a complete end-to-end outsourcing solution, or through its component parts: Source-to-Contract or Procure-to-Pay.
Access to Expertise
SESAMi's Source-to-Contract solution involves the management of processes from strategic sourcing to contract management.
Based on the analysis of spend, SESAMi offers advice and recommendations on how to improve sourcing and contracting processes and methodologies. Including: supplier identification, running sourcing events (including the issuing and evaluation of RFx), supplier selection and finally the negotiation of contracts. At all stages of this process the customer retains full control over all recommendations implemented. For example, the client decides which procurement projects to advance, which suppliers to select, what contract terms to agree. SESAMi’s procurement specialists will offer the recommendations, advice and assistance, but the ultimate decision lies with the client. One less obvious area where SESAMi can help within Strategic Sourcing is in the ‘selling’ of new suppliers and contract arrangements internally to help reduce maverick spend. The data and analytics provided by SESAMi enables the clients procurement teams to demonstrate the potential benefits of new suppliers, and as this data has come from an external source, it becomes more convincing internally.
Once in place, contracts need managing. Not only for supplier compliance, but to ensure that potential users are fully exploiting the value of the contract arrangements. For many contracts there will be continuing 'housekeeping' tasks, such as maintaining product catalogues.
SESAMi’s Procure-to-Pay offering covers the workflows and processes needed to convert a requisition to a delivery, an invoice, and ultimately a payment, with all the necessary approvals, in an auditable form.
Typically, even a simple procurement involves multiple touches across different function, departments, sites or even countries. The supporting and validating information may be similarly diffused. The results are error, rework, delay, disagreement, unhappy suppliers and in extreme cases unnecessary legal action.
By applying SESAMi’s workflow techniques and procurement knowledge, the whole transactional cycle can be both accelerated and made less error prone. Other benefits include: better supplier relations, faster achievement of requirements, and the ability to redeploy staff to more strategic tasks. Direct savings may be lower and less obvious than in the Source-to-Contract cycle.
As well as managing the separate components of the procurement lifecycle. SESAMi can manage the entire process across a wide range of commodity groups, helping to: maximise savings, minimise risk, ensure compliance and accelerate the entire process. By using SESAMi as an extension of your team to manage the mundane tasks of purchasing, it enables the client team to reallocate team members to focus on more strategic matters. Overall, and counter-intuitively, outsourcing the Source-to-Pay cycle gives the customer greater control and visibility of what they are spending.
The synergies of placing, ordering, and payable processing under the umbrella of sourcing are significant. Taking an end-to-end perspective generates cash flow improvement through payment term optimisation. It reduces errors and bureaucracy from invoicing, driving improved compliance to preferred supplier and pricing agreements, dramatically reducing the operational costs of processing teams.
SESAMi are strong advocates of source-to-pay as the optimal sourcing and procurement operating model. We believe that a harmonious, streamlined end-to-end service generates incremental value of 5-10% beyond standalone sourcing or procure-to-pay optimisation.