The month of May means racing is on our brains here in Indianapolis. The Indy 500 is just days away and our city’s excitement for speed and racing is contagious. With this “need for speed” in mind, I’ve been asking myself this question: How do we help our clients go after these top savings priorities in the quickest and most efficient way?
The answer, I believe, starts by looking at some industry research.
Over the last few years, we’ve seen several full SRM factors become more important and even critical to our clients’ procurement goals. Even so, savings remains a top driver for procurement teams.
In fact, Ardent Partners’ Keeping Score research found that “identified savings” and “implemented savings” are BOTH among the top 3 priorities for CPOs and enterprises as a whole.
However, hitting savings goals through a modern sourcing approach requires Best-of-Breed technology. And you don’t necessarily need an entire S2S suite right away. In fact, Gartner found that full sources to settle suites take FIVE YEARS to fully implement. The findings were covered in its November 2013 study, Be Cautious Before Investing in S2S Suites for Procurement.
How many teams have five years to realize their savings goals?
Further, Gartner found that low adoption plagues procurement teams that try to implement the full suite at once. To look at it another way, how useful is it for an Indy Car driver to have the faster car if he doesn’t know how to properly drive it?
If you’re looking to speed up your savings this year, take a modern sourcing approach.
What does that mean exactly? Well, we believe that modern sourcing approaches apply best-of-breed technology and best practices to strategic sourcing processes. Modern sourcing pros will take the time to understand, communicate, and collaborate with all business groups. Remember that adoption, ease-of-use, and appropriate training and support are critical to your success. Find a technology partner that can give your team’s modern sourcing goals and saving needs the appropriate level of attention and support.
You don’t want to get left on the race track with a powerful race car that no one drives. Or rather, feel stranded with an expensive piece of technology suite that no one knows to use.