Can your Procurement Vendor(s) Pass This Test?
Procurement software should make your life easier. Choosing that software, however, can be an arduous and confusing process. These systems are a huge investment and you want to be sure you’ve done the due diligence to see the return on that investment.
You can banish buyer’s remorse by making sure all the procurement software vendors on your shortlist answer “Yes!” to these five questions:
1. Will you enable my suppliers without extra fees?
This is a big one. Think about all the suppliers your organization does business with. Who is going to set those suppliers up in your system? If your software vendor doesn’t provide this service as part of their base price, be sure to account for additional charges – or budget for extra staff hours.
2. Can you stagger my implementation so I avoid paying for multiple procurement systems at one time?
You need a procurement software vendor who will be a true partner, starting with your implementation. If you already have a point-solution in place, will your new vendor work with you to create an implementation timeline that allows you to avoid paying for two systems at once? If they can’t, you’re missing an opportunity to save right off the bat.
3. Can you handle my full procurement process – upstream and downstream?
You’ll get more from your investment if the system can handle your needs today and tomorrow. This means having both the flexibility and functionality to add additional capabilities as your business demands. Choosing a procurement software vendor who has robust offerings on both the upstream and downstream sides of the process will maximize the value you achieve over the long run.
4. Does your procurement software manage direct and indirect spend?
Another big one. Many vendors excel at helping manage indirect spend. But can the vendor also manage direct spend? If your new system can’t handle direct spend, you’re missing another tremendous opportunity to save.
5. Will you constantly add new features and functionality without additional fees?
One of the benefits of a cloud-based software as a service solution is that the vendor manages maintenance and updates. The best procurement software vendors will constantly add new features and functionality without nickel and diming you to take advantage of them. Be sure your new vendor is going to stand behind their product by keeping it competitive.
Choosing a new procurement software vendor for your organization is a difficult and daunting task. If the vendors you’ve selected for your shortlist answer “yes” to these five questions you can rest easy, knowing you’re on the right track.