Bring sustainable value to the bottom line.
Increasingly, procurement is being looked to for the added value it can bring to the organizational table. Expectations are on the rise as well, with big data and advanced analytics driving decision making to new levels by enabling teams to generate new insights and achieve unprecedented proactive capabilities. As covered in recent reports by both Ardent Partners and PayStream Advisors, demonstrating procurement’s value can include many components depending on the priorities of any particular company. But with increased reliance on cloud platform P2P solutions, showing procurement ROI is a great place to start.
PayStream Advisors’ research indicates that the majority of organizations manage their procurement under manual processes or with inefficient, outdated technology. This is perplexing, considering that both research companies have identified top procurement priorities for a number of years as:
- Increase savings
- Achieve process efficiency
- Better leverage technology
You can’t leverage technology you don’t have, and you need those tools in order to achieve the first two goals. Budget pressure is the usual culprit when companies forego or delay technology implementations, but that’s something of a vicious cycle; put off the investment, and you delay the returns it delivers. Being able to demonstrate upfront what the procurement ROI could be makes a powerful argument for investing in the power of automation, integration and collaboration that the right technology provides .
Unseen procurement data, unrealized potential.
To achieve cost savings and increase spend under management, you need to have all the data accessible and visible from across your organization in order to analyze it. Without a cloud-based procure-to-pay solution that includes integrated master data (and ideally, contract management), procurement teams run into a slew of challenges:
- Poor quality and/or insufficient spend data
- Manually intensive and error-prone process of data management
- Lack of visibility to identify potential savings opportunities
- Inability to prioritize top spend under management areas
- No viable way to determine contract compliance and obligations management
- Lack of collaboration between people, departments and offices
- Out of control maverick spend
Without technology and the data mastery it enables, business decisions can be affected — such as incorrect decisions, poor quality or poorly-timed decisions, or even decisions not being taken at all. It could even impact the ability to remain compliant as a result of inaccurate regulatory and legislative reporting.
Just as critical, without technology it becomes difficult or impossible to accurately demonstrate procurement’s value.
There’s no question that there are serious disadvantages to using outdated procurement solutions, especially where data is concerned. As PayStream Advisors shows in their 2018 Procurement Insight Report, and Ardent Partners explores in CPO Rising 2018: The Age of Intelligence, integrated solution technology provides the automation, integration and collaboration that standardizes process efficiency, enables optimized spend and savings management, maximizes your team’s agility and allows you to clearly show your procurement ROI.
If you’d like to see all the advantages of our Determine Cloud Platform Procurement Solution for yourself, schedule a no-obligation demonstration.