Growing via acquisition is a common strategic strategy but this often creates chaos in procurement.
A key decision during the acquisitions process is determining which systems will be integrated.
In many organizations, financial and human resources are integrated early in the process.
Frequently, procurement is not integrated especially if it traditionally has not had a seat at the table.
I have discussed this issue with many senior procurement professionals and most would like to find a way to provide each entity a tool that would increase efficiency and effectiveness.
As a first step I would suggest evaluating how the tool will work with each business unit’s systems.
Ideally the tool would be flexible enough to bolt on for data import and export.
In some cases, creating an interface with every business unit may be a significant hurdle. If it will be operated as a standalone tool, then the system and data must be accessible through a central portal, so all procurement teams can utilize the tool.
In my experience best in breed eSourcing tools can bolt on or operate as a standalone tool with comparable results.
Once you have determined how the tool will be operated here is a list of the most commonly mentioned capabilities:
- Minimal training to get up and running
- Ability to launch and manage large and/or small events with similar effort
- Flexible enough to utilize with all direct and indirect spend categories
- Out of the box tool so events can be launched in 2 weeks from the start if needed
- Scalability to add and train additional users without performance suffering
- Easily interface with stakeholders including adaptable reporting for diverse needs
- Transparency that controls offline deals
- Automation of redundant tasks including event creation, communication and analysis
- Speed and depth of analysis and reporting that supports a dynamic knowledge base
- Eliminate the business risk associated with procurement information residing on individual laptops
- Justifiable investment cost with evidence of ROI (case studies)
The primary goal should be to provide a tool that all your procurement teams can use without a huge investment of time and money.
The good news is that this is a lot easier than most people think.
If this is operated on a central portal as a standalone system you will be able to access all the power and each new event will build your knowledge base.
Plus, you will be up and running in weeks not months or years.
Imagine the time and financial benefit that will be generated with minimal effort.
Even if you prefer or require a bolt on solution this can be accomplished and it won’t be a long and drawn out process.
If you have been searching for a solution to this or a similar issue perhaps it is time for us to have a chat.
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 973-936-9672.
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.
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Until Next Time, I Wish You Great Success in Your Business and in Your Life