(Chapter 4) Adventures of Ivan the CPO: 10 Technology Tools Every Procurement Team Needs In 2018
- Chapter 1: Ivan joined his new job as a CPO, with a host of challenges which needs to be overcome.
- Chapter 2: Friends in Need, Indeed!
- Chapter 3: “Not All Those Who Wander Are Lost”
“ Lock, Stock, and Smoking Barrel.”
The meeting just didn’t go the way Ivan had planned!
Ivan had hoped for a more relaxed discussion today at the quarterly C-level meet, based on his recent conquests. However, the management had something else in mind. Turns out , with the recent political and economic turmoil in Europe, the company was looking to lose a significant amount of revenue and needed to save more to keep cash limits safe. Hence, the company is looking to aggressively cut costs, and Ivan needed to step up. “Process efficiency is all fine and good but right now the need of the hour is actual cost savings,” they explained.
Ivan knew what needed to be done. His sourcing team has been creating numerous contractual agreements for their usual purchase categories, which was yet to be utilized. Ivan’s next few days will be focused on ensuring that all purchases are routed to the right contracts.
Zycus software, Ivan knew, had a facility called Contract Lock , which was particularly designed to help his cause. It worked on 3 levels:
- Contract as Catalogs : Zycus software allowed flipping of contracts into catalogs which will show up in searches alongside catalogs and allow more spend through contracts / catalogs
- Tier-ed pricing support : For contracts which have volume based pricing, the software provided full visibility during purchases to ensure better cost savings
- Support for Non- PO Purchase : Any Non-PO Invoice was automatically inspected for matching contracts, and if so, the purchase could be tagged with contract number with ease
These features provide to be a game-changer for procurement. With purchases flowing through existing negotiated contracts, this validated the effort put in over the years by the hard working sourcing team.
Maverick spend kept going down every month, with more and more contracts being used as catalogs. “Procurement team has earned the respect of the organization,” thought Ivan, as he prepared for the next board meeting.
Know how collaborating with stakeholders created a win-win scenario for Ivan in Chapter 5!