Does Your eSourcing Platform Work with All of Your Spend Categories and Events?

Does Your eSourcing Platform Work with All of Your Spend Categories and Events?

How well does your eSoucing platform work with all spend categories and events?

Can your platform manage an event with 5 line items as easily as it does with 500 line items?

Does it work effortlessly with all spend categories?

On a weekly basis I speak with companies that are unhappy with their current platform.

They are typically using a platform that falls into one of the following 4 categories:

  1. Integrated systems that cover all phases of the supply chain
  2. Systems that focus on one aspect of sourcing including: sourcing, spend management, auctions and contract management. Many will bolt on or share information with a larger system.
  3. In house systems that were developed to meet specific industry or company requirements
  4. Processes that rely on Excel, Word, Google Docs, Email and/or PDFs

Why are they exploring alternative platforms?

A significant amount of annual spend is not flowing through the platform.

Some of the reasons provided are:

  • Large, complex systems are a challenge to use with smaller events due to set up time. Stakeholders get frustrated by the amount of information needed for seemingly simple purchases.
  • Many of the systems that focus on one part of sourcing are becoming stale. The developers are no longer investing in enhancements and/or support.
  • In house systems are often based on outdated technology and are not nimble enough to meet changing business needs.
  • It often seems more convenient to email or call a handful of suppliers for small events especially if you can’t find an Excel file that fits your current needs.

Ease of use is the number one benefit prospective clients tell me they want in a new system.

This is understandable.

Why would you want to make your job harder?

Aren’t we all looking to increase efficiency and effectiveness?

I like controls based on my strong financial background and training. So, when I hear that a sizable portion of current spend is not made using the current system I know there are wins that are being missed.

Purchases made using workaround methods are much more likely to contain errors.

The information from those purchases will not be easily available for analysis without a lot of pasting and combining.

It may seem to be more efficient in the short run to use a workaround, but it will have a negative impact in the long term.

Organizations like great sports teams need to be using the same playbook.

A system that is flexible enough to handle all events is a powerful business asset.

Each new event contributes to the knowledge base of the organization.

In many organizations, procurement is still seeking a seat at the table.

I can’t imagine that the situation will change if a large part of the current spend is outside your platform.

If any of this sound familiar, perhaps it is time to question the status quo.

Ask better questions, make changes and 2018 will be your best year ever.

Action Step: If you are uncertain where to start the process of change, a procurement professional like myself can provide guidance and expertise to help your organization achieve the results you want.

If you want to go explore this topic in greater detail, please contact me. I invite you to request 30-minute discovery conversation. In my experience the next step will be apparent at the end of the call. I never assume that what I have to offer will be right for everyone, so don’t expect a sales pitch. You can reach me at (973) 718-7071 x875. The call will be forwarded to my mobile phone if I am not in my office which is pretty likely.

If you would like to know more ways to reduce costs without changing the way you do business, simply give me a call or send me an email with your contact information and the best time to reach you.

You Won’t Drift to Success©

Commit to taking the next step.

Until Next Time, I Wish You Great Success in Your Business and in Your Life

Mike Jeffries