Procurement executives are now, more than ever, under significant pressure to deliver more cost savings, source and manage strategic supplier relationships, mitigate supplier risks, and accelerate procurement cycles. Faced with these ever-present challenges, CPO’s and sourcing professionals must continue to seek innovative Spend Management solutions that will enable their companies to spend smarter and save more, delivering rapid ROI and bottom-line impact.
Until recently, Spend Management processes & technologies (particularly the Procure-to-Pay space) have been status quo. However, new solutions and technologies have emerged and are undergoing wide-spread adoption, challenging the conventional thinking about Spend Management solutions.
Increasingly, companies are seeking options for replacing their expensive, non-innovative ERP-based eProcurement systems for streamlined purchasing solutions that work a little more like consumer e-commerce websites and a little less like enterprise software.
Procurement Executives need cohesive solutions spanning the “Source-to-Pay” spectrum (not necessarily single solution, but best-of-breed solutions with “native integration”).
There is a strong movement toward simple-to-use (and easy to configure and deploy) platforms for managing and controlling all Spend (including Expense side), with a user-interface designed for the way people intuitively work and collaborate today via eCommerce.
This movement toward “simple & streamlined’ is based on the premise that “people spend money, not companies”, and that in order to create a strong culture of thriftiness, your employees need tools that are simple-to-use and easy-to-adopt, hence providing them with both the incentive and means to spend smarter and save the company money.
More and more companies are understanding, and beginning to leverage, the advantages and benefits of Cloud technologies. Companies are transitioning away from the Purchase-License model characterized by high “total cost of ownership” (TCO) (including high up-front investments in hardware, software, implementation services, ongoing support and upgrade costs) to a SaaS/Service Level model with significantly lower TCO, a shared risk / success-driven approach, and enabling a much faster pace for introducing new innovations.