The #1 thing that should guide your Procurement Technology Investment

The #1 thing that should guide your Procurement Technology Investment


Procurement Technology Advisory

Whether it’s the rise of social media, cloud applications,
collaboration tools, and more – technology is transforming how companies
operate by offering new ways to drive efficiency and productivity in all areas
of the business – including Procurement. Digitalizing procurement processes can
be exciting- considering digital tools enable world-class procurement
organizations to further improve their performance by at least 22% (measured by
cost savings, according to The Hackett Group). The challenge, however, is
navigating the crowded market to find and partner with a procurement software
provider that matches your procurement organization’s maturity and business
objectives.

The solution with all the
fancy bells and whistles might not be the answer for your challenges if, at the
end of the day, its functionality is beyond what your procurement team is
realistically going to adopt. This is where detailed requirements definition is key. Start by identifying the challenges
you’re looking to solve or the scope of work you want to digitalize, such as
spend visibility, contract management, procure-to-pay, etc. Gather feedback
from members of your procurement organization to understand their pain points
and what they feel could be done more efficiently or faster. With their input,
you can develop a cohesive challenge statement, as well as identify the
business objectives you’re looking to achieve that will act as your guide
throughout the procurement software sourcing process.
As you move forward with the sourcing process of identifying
and engaging procurement solutions providers, keep those objectives in mind.
Your RFP should capture the items your organization is looking for in a
software provider. Be sure to communicate the business outcomes you’re looking
to drive. And, do your homework. Be prepared to articulate the processes
currently in place that you’re looking to improve and the changes you want to
see. 
Digitalizing procurement processes and investing in
procurement software can be a multi-year – even a multimillion dollar endeavor
for some organizations. As Procurement professionals, we pride ourselves in
acting as the objective third party for our internal stakeholders in helping
them select the suppliers and goods they need to best achieve their goals. However,
taking an unbiased and fully objective approach to sourcing a software provider
for ourselves is often easier said than done. Procurement organizations can
benefit by bringing in a third-party procurement technology advisory firm to
help with this decision-making process – from identifying the underlying business outcomes
you’re looking to achieve and matching them to functionality requirements
through the implementation process.
The procurement digitalization process doesn’t end after the
procurement software has been deployed. Success should be measured in
sustainable business results. Return to your north star – AKA the business
outcomes you’ve identified when you began this initiative. Consider how those
outcomes can be tied to specific metrics that demonstrate you’re solving the
challenges you outlined. Embrace a mindset of continuous improvement. On an
ongoing basis revisit how you’re leveraging the tools at your disposal and the
ways in which they could be more effectively utilized, as well as remaining
privy to the available options to solve additional business challenges.
For more support on selecting and implementing a procurement
software solution for your organization, contact Source One’s ProcurementTechnology Advisors.



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