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Case Study

Source-to-Pay Transformation (S2P)

A holistic approach to spend management through effectively leveraging managed services

The Profile

One of the largest Medicaid Managed Care organizations

The Objective

As a result of a procurement transformation initiative, client sought to optimize operations within the procurement function. Due to the recent changes to source-to-pay policy, process and procedure and the implementation of a leading procurement technology suite, the need for operational alignment was evident. The client hoped to achieve improved efficiency and customer satisfaction.

The Challenge

Even prior to the procurement transformation initiatives that were nearing completion, there were multiple redundant and time-consuming tasks that needed to be improved. Ranging from sourcing and contracting to procurement and supplier enablement; and even for supporting the new procurement system. The client teams were essentially wearing many hats and shared a heavy load of cross-functionally similar tasks. The above organizational environment and recent procurement changes had no alignment for an acceptable level of internal customer satisfaction. The above situation was in part due to lack of a change management plan. The change management plan would have helped identify needs to support the business earlier in the process. At the end of the day, the client felt that out-tasking certain processes of the operation would be a smart move towards positive change.

The Impact

After we assumed operational responsibility for various procurement and solution management tasks, our managed services team has helped our client achieve following results:

• Through task segmentation and realignment of duties, relieved more than 70% of existing staff of nearly 6-8 hours of any tactical, non value-add activities per week.

• By improving the various tactical processes and service levels, there was a decrease in the cycle time of transactional-exception processing by nearly 28%.

• Through a more efficient transaction process the team improved throughput of user requests to completion by 2.3 times, resulting in significant efficiency gains.

• By acting as their functional system administration support, we greatly improved end user satisfaction.

• Enhanced performance management led to an increased user experience thus exceeding the customer experience targets set by client leadership, as they called it a “great achievement for our department.”

“The best part of the program is how the Velocity team seamlessly acts on our behalf.”