‘Tis the season to build those jolly-good annual budgets and plans while factoring in the uncertainties about inflation, supply chains and resources. As Procurement anticipates the year ahead, the must-have list should include a solution that can equip and empower team members and leaders with powerful intelligence to drive better business performance not just at the start of the year, but in a dynamic, ongoing way.
A big-picture strategy needs to be informed by accurate data, converted into tangible plans and optimized based on how it’s going. More organizations are seizing the opportunity to target that “management middle” to connect strategy with its execution in Procurement. It’s an area that had been historically under-addressed by procurement tech, but that’s been changing in recent years due to the growth in new solution offerings available.
So, what difference is needed? As Spend Matters analysts noted in 2022: “One needs to take the perspective of the future direction of the procurement technology market — which, we would argue, requires thinking beyond the framework of the traditional source-to-pay (S2P) suite.”
That means a focus on implementing a solution that lets you harness great insights to provide for much-improved management oversight. Most of the data you need is already there and, once the right toolset gets it organized and ready to work for you, it can be joy to Procurement and beyond.
To make the business case for a technology initiative, here are five areas where enhanced Procurement performance intelligence can “deck the halls” of your organization and sharpen your outcomes:
How do you get there? Two key solution categories to build this foundation of strong procurement intelligence are spend analytics, to produce the spend insights and benchmarking, and a newer but customer-proven category of procurement performance management. Spend Matters analysts also described in July 2022 that this type of data-led approach using those solutions in combination can be thought of as a “strategic spend terminal.” It runs adjacent to your traditional source-to-pay suites, exchanging data at logical integration points.
Category management and strategic sourcing may be a part of the mix too. As you determine your specific projects and their goals, those solutions can help hone-in on more granular success criteria at the project level.
Procurement is clearly a value lever, that’s not in dispute these days. It’s time those teams and their stakeholders had a purpose-built solution to help them develop and track plans that support corporate goals, actively identify new ways to contribute and demonstrate what they ultimately deliver. Yes, it takes structure and leadership, but the right technology should be the gift that keeps on giving.
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