The Spend Matters Guide to Gaining Leadership Buy-In for a Source-to-Settle Suite of Solutions
In our recent blog, Spend Matters Explains the Benefits of Having Your Source-To-Settle Solutions Centralized, we discussed the additional benefits realized after implementing a suite of solutions on a single platform over disparate point solutions. While many procurement professionals understand why a suite is beneficial, it can still be a struggle to gain buy-in from your leadership team.
Before proposing a vendor switch or adding additional modules, there are a few questions you should ask to ensure it is the right fit, and then there are some key benefits you can present to leadership to show the greatest value for your organization.
There are numerous benefits to implementing a suite, but it is important to evaluate if a suite is the right approach for your organization. Some organizations don’t have the right platform to fit a suite, or they are just won’t fit pragmatically. According to the recent Spend Matters report, Making the Business Case for Procurement Suites over Standalone Modules: Benefits, Rationale and Hard-Dollar Returns, some examples of when a suite may not be the best fit include:
- Organizations without formally trained team members that are able to pull the greatest benefits from a suite.
- When procurement is decentralized across units and there is no mandate for central oversight and compliance.
- When processes and procedures were built-around piece-meal applications loosely tied to an ERP system and a significant amount of process redesign needs to be done.
Don’t fall into one of the above-mentioned categories! Switching from an existing standalone product is a big change, and many may not see the long-term value of shifting from an established working solution. The following are some key points from the Spend Matters Report to present to your organization’s leadership highlighting the long-term benefits and value that adopting a suite can provide your company.
Suites offer greater Source-to-Settle Process Efficiency (Less Tactical, More Strategic)
While it is possible to integrate data in a non-suite environment, there will always be a point at which data integration strategies break down compared with suite models. One suite solution equals no data integration necessary.
Total Cost of Ownership (TCO) Reduction
Standalone solutions can provide significant cost reductions from supplier performance improvement, spend analysis and decision optimization. But in order to realize the greatest TCO reduction an organization needs to have the best-of-breed solutions in place and the ability to make them work together well. A suite solution can take this orchestration headache away.
Smarter Risk Management
Standalone solutions can identify the most significant areas of risk, and can track these risks with point solutions. But while standalone solutions can only track previously identified risks, a suite offers a centralized data and risk repository that allows users to identify new or emerging risk.
As the report states: Any organization in which departments really want to work together will find a way, but their efficiency without an integrated, suite-based platform will be limited.
While a suite isn’t essential to ensure supplier regulatory compliance, and standalone solution is a good option for this, a suite will make it easier for suppliers. By offering a single portal to log into it reduces hassle and lost cycles for both buyers and suppliers.
Questions you should ask to determine if a source-to-settle suite is right for your organization. The benefits of a suite and additional points to provide to leadership to earn their buy-in.
Still need more points to build your case to leadership? The final blog of this series will discuss some of the ROI you can expect when implementing a solution suite, such as JAGGAER’s Source-To-Settle Solutions.