Does your organisation struggle with its traditional procurement software?
Many businesses do. I speak to many Procurement Professionals on a regular basis and it’s apparent that an increasing number of companies are finding their procurement software is no longer fit for purpose.
Consider these points for a moment.
1On-Premise v Cloud
Cloud based spend management platforms are starting to disrupt the traditional procurement software space due to their speed of implementation, ease of use, low upfront costs and flexibility to integrate with online and offline platforms.
Fewer businesses are prepared for the high upfront costs, complex deployments and challenging integration needs of traditional on premise procurement software. It’s just too high a cost and too high a risk.
2Buy-side Only or Seamless Process
As more organisations seek efficiencies they need to look beyond their supply chain. As often as not, inefficiencies are caused by internal systems, delays or poor communication on the buy side. Your procurement platform should not stop with the purchase – it should streamline the sell to the internal (or external) customer.
With “Req-to-Check” process automation great things can happen. Businesses can predict demand, aggregate orders, extend delivery cycles to reduce costs, optimize inventory, reduce risk, and all sorts of tangible and intangible benefits.
Just think what you could do if you had visibility of every transaction globally and in real time – right across your business.
And what if this end-to-end process was fully automated, so procurement experts could set rules for localized, non skilled purchasers to make the right decision for the company.
3In-house Tools or Collaborative Platform
And with easy access from any location comes collaboration. A requisition can be initiated in Chicago, approved by a manager in New York, goods receipted in Madrid and reported to management in Tokyo. All in real time, any time.
How much time do your team spend at their desk in the office. Probably less and less. As more companies offer remote working and flexible hours, the nature of our work life balance is (supposedly) meaning we can work from anywhere. So cloud and mobile enables access from anywhere.
4Complex Systems or Simplicity
As procurement professionals focus on larger, more complex transactions, an increasing number of purchases made by business users. And often these novice buyers are younger, more internet savvy and expect to be able to make a purchase just like on Amazon. Fail to provide easy to use procurement platforms and these users will simply migrate to the most convenient tools – losing the visibility and control needed by the business.
5Local Business Unit or Global Coverage
Where are your procurement experts based? How do you leverage their knowledge and experience across your organization when they’re based elsewhere. I recently spoke to a senior procurement executive for a global pharma. He has pan European responsibility but his team is spread across 5 countries. And each country uses different ERP platforms and supplier bases, and categorization and reporting metrics and sourcing strategies. And, and, and…so its hard to know what the organization spends.
Do you have untapped expertise within your partners or supply chain. Many suppliers have specialists that could drive process improvements, cost savings and add value – if only you could access these skills. Well, with cloud based collaboration, you can.
5Delayed High Level Information or Real Time Global Visibility
We still speak to many senior procurement professionals who can only estimate their expenditure at a high level. They have to wait until AP provide invoicing data, which usually won’t match up with the PO’s raised and issued. Do you have to base your critical business decisions on spreadsheets analyzing last years spend? Why get real time global visibility of your data, structured in the way you need it. It’s not complex, its just ‘cloud’.
Why not one, integrated platform across the business?
Rather than a supply chain with broken links, think frictionless tube.
It’s common sense.