Guiding procurement teams to the best solutions and most effective implementations of these solutions involves engaging with them at a level much deeper than features, functionality, and price. We establish relationships and learn about their challenges, the underlying reasons they are looking for a new solution, and their short and long term goals for their team.
In the end, we firmly believe that Iasta’s success is measured by our ability to solve problems and achieve goals for each client individually. Within the product management team, we are also interested in analyzing how these problems and goals change over time. This way, we can build products that address problems at a market level, and achieve enduring success for individual companies within that market.
Surprisingly, Cost Savings is No Longer in the Top 3!
Historically, cost savings was the sole metric of success and the primary reason procurement teams purchased new solutions. However, in the past five years, we have seen a real shift in how procurement teams view their contribution to the company as a whole, and subsequently, how they measure the success of the procurement team.
This shift has continued. In 2012 and 2013, cost savings was the third most frequently cited reason our clients and prospects searched for a new sourcing or spend analysis solution.
In 2014 cost savings has slipped to 4th place, with just 10% of companies citing cost savings as their primary reason. So far in 2014, the top three reasons procurement teams reported looking for a new solution are:
- Dissatisfaction with their current software solution
- Process improvement
- Merger and acquisition activities have broadened the procurement team and increased complexity of sourcing and spend analysis
Stay tuned for my next post where I’ll go into more depth on each of these motivating factors and what it says about the evolving world of procurement.
In the meantime, we’d love to hear why you adopted procurement software in the past and whether you think those reasons will be different as you consider adopting new technology solutions in the future. Share your story in the comments section below or tweet us @iasta.