What is the S2P process?
S2P is a strategic procurement management process that covers all stages from sourcing to payment, aiming to optimize the supply chain. To learn more, read the article on Source-to-Pay (S2P): definition, steps, and benefits for procurement.
Why is it important to digitalize your S2P process?
Without a digital solution tailored to intellectual services procurement, companies, and especially buyers, lose time on tedious tasks, which increases costs. Monitoring compliance and invoicing becomes complex without visibility over the entire procurement cycle, suppliers, involved managers, locations, and currencies used.
The benefits of a VMS in the S2P process
Adopting a VMS offers significant advantages: cost reduction, improved supplier management, and instant performance analysis.
- Reduce costs and increase efficiency
Digitalization centralizes all stages of the procurement process, from sourcing to payment management. This centralization and the automation of repetitive tasks allow teams to focus on higher-value activities like strategy. The integration of AI and the modernization of tools further enhance operational efficiency.
- Improve supplier management and supplier base
A VMS enables efficient management of external providers by integrating rigorous selection criteria and regular evaluations. It also strengthens relationships with strategic suppliers and allows for regular challenges to the supplier base to maintain its relevance.
- Make informed decisions through the centralization of reliable data
The VMS collects detailed data to accurately evaluate suppliers. Real-time dynamic dashboards and ranking tools for IT service providers offer complete visibility over procurement processes, facilitating 360° management of the S2P cycle. This transparency improves decision-making and budget management.
- Ensure compliance and security
Working with external providers can lead to legal risks, such as illegal subcontracting and unlawful labor lending. The VMS ensures compliance with French labor law through tailored forms, validation workflows, and mandatory clauses.
Concrete example of better-controlled spending thanks to the VMS: tail spend
On average, 20% of intellectual services expenditures are classified as “tail spend.” This concept refers to purchases that represent a small portion of the total volume but generate a large number of transactions. These often include low-value expenses spread across various suppliers and categories, including expense reports, one-off purchases, and contracts with non-referenced suppliers. With a VMS, these expenses are managed effectively.
By combining transparency, efficiency, and compliance, our VMS solution optimizes the management of external resources and enhances your company’s overall performance. With LittleBig Rise, we are committed to continuously improving our VMS to better meet your needs. Discover today how our solution can transform your external resource management.
