We’ve all gotten so used to everything being “in the cloud” that many of us have stopped thinking about what it really means for enterprise business – and what it makes possible. I dug into the topic in a conversation with Tim Scott, a Business Consultant Manager at Determine, to follow up on some of the points raised in his recent webinar on sourcing and contract management with PayStream Advisors.
Among the top advantages of cloud computing is reduced friction for the buyers, stakeholders, and suppliers involved in different procurement processes. People tend to look to sourcing solutions to help them drive down costs, but in reality sourcing should do much more. Sourcing contributes to ease of access, allowing users to ask and answer questions, share information, and exchange and capture the most accurate pricing and terms. Leading procurement organizations understand this and harness the full power of their sourcing tool for the sake of internal users and third parties.
A frictionless workflow certainly starts with access to information, but what risks does procurement need to overcome in order to maximize the value created?
Removing friction at the source.
There’s a heavy cost associated with misinformation created when details and documents have to be transferred from one system to another. Having artificial breaks between any two systems, groups, or sets of coworkers creates unnecessary risk. Silos can lead to missed opportunities for savings or costs no one expected – just because one hand wasn’t talking to the other. It’s very important for solutions to talk to one another directly if the potential of all information is to be optimized.
A fully integrated, cloud platform can create an interconnected solution that shares data for consistency, collaboration, and compliance. Contract fields can be pre-populated with the correct information and associated with documents if necessary. Companies can incorporate suppliers’ past performance into current sourcing events to keep the team informed when making a sourcing decision.
Achieving visibility from onboarding to sourcing to contract creates a zero-loss situation that prevents data leakage. It is very enlightening to help companies make connections between sourcing and contract management, or sourcing and procurement and the creation of POs.
Thanks for listening in.
Determine OutLoud is our podcast series that minds your business in source-to-pay and contract management. If you’d like to be a guest on Determine OutLoud, would like to suggest someone or have an idea for a topic, we’d love to hear from you.