Investing in Procurement Technology – Choosing the Solution Intelligently
In the previous blog we spoke about how investing in wrong technology can affect rather than boost procurement performance, using a case study.
Taking the case ahead, in this blog we would like to highlight on the kind of technology the leading global manufacturing giant should have invested in.
Procurement technology is meant to reduce human effort, shorten the cycle time and at the same time improve the accuracy and effectiveness of procurement teams. The technology should be responsive and flexible enough to accommodate user needs leading to higher user adoption rate. It should also be compatible with other source systems that the organization may be using and have a fast but well planned roll out schedule.
The manufacturing giant should have looked for solutions that;
- Accommodates large nos. of line items and suppliers in a single sourcing event. Thus enabling the sourcing users to not only build complex sourcing events easily but also to analyze the responses from these events in quick time – in effect, shortening the sourcing cycle.
- Provides superior search functionality for contracts along with the ability of side by side comparison and review of multilingual contracts and offer stakeholders access based control for enhanced security to confidential contracts, preventing any information leakages.
- Provides the ability to classify the billion dollars of spend data at a granular level and identify savings opportunities. Technology that offers quick turned around time for spend data refreshes would allow them to take faster decisions based on accurate spends data. Additionally, helping them standardize & streamline the commodity price tracking & reporting processes, thus taking advantage of favorable commodity market scenarios.
To part with, analyze your organization requirement and search for technology that best meets your requirement. Sit for technology demos, spend time doing research.Take time and invest rightly!