The effectiveness of Source-to-Pay services in Indirect Procurement - By Heidi Humphries, DSSI LLC

Many points were made in an earlier post about the benefits of consolidating your organization's indirect materials spend with that of other like companies. Aggregation of high-use MRO categories consistently produces cost savings well beyond what any one company could realize on its own.

Using Source-to-Pay in Consolidation of Activities

Think about how many times your company touches an invoice or interacts with a supplier to confirm a price or shipment. How much time do your MRO buyers spend tracking down one-time use items or gathering data from various sources to create reporting documents? On that topic, does your company even have access to the data sources you need to pull together effective reporting on cost savings per item, spend per requisitioner or RFQ response per supplier? And while some options do exist for e-catalogs and supplier management tools, few of them interface with legacy ERPs in a cost effective and timely manner keeping you from managing your spend at an item level and achieving substantial cost savings over time.

How DSSI Drives Cost Savings

DSSI's Source-To-Pay model allows for shared services in indirect materials procurement amongst all of its clients and is funded by a portion of the savings achieved through material cost aggregation. Starting with an aggregated spend that can be listed by item in client-specific e-catalogs, DSSI drives cost savings using a supplier-agnostic sourcing approach. Using client-defined parameters, DSSI's Epic® e-procurement tool facilitates RFQs, approvals, order review, invoice consolidation and more, either on its own or interfacing with legacy ERPs. Throughout the entire process, Epic® maintains on-demand metrics in item-level cost savings, supplier response times and spend patterns to help clients and DSSI Client Managers stay on top of opportunities. Dedicated DSSI buyers also align with each of your sites to provide the customized support your organization needs to run smoothly. Learn more about how to transform your organization's indirect procurement program with DSSI's full Source-To-Pay process or contact us directly.