PSM: A Collaborative, Automated Approach to Managing Savings Initiatives
Posted by JAGGAER Staff in Uncategorized on August 4, 2016
The other day I was cleaning up my home office, and I found some old lists. They were over 5 years old and included places I hoped to go, books I wanted to read and recipes I intended to try. It was fun to look back through them and mentally check the items I have in fact done – London and Pillars of the Earth – yes and yes. But it surprised me that I had completely forgotten about some of the goals I set back then.
It’s no secret why. Life gets busy. Priorities change. But it reminded me of just how easy it is to get sidetracked and forget about ideas that once and still are good and relevant.
The same thing happens with savings initiatives in organizations.
Useful ideas intended for future projects get pushed aside and forgotten. They live in old notepads in a drawer, buried emails or computer files on outdated systems. Maybe the idea “keeper” leaves the department or company and so does the idea. Add an increasing influx of data and tracking systems, and it’s no wonder that opportunities get missed.
It’s important and necessary that procurement and sourcing teams measure bottom line savings to have a strong pipeline and foolproof method for capturing and storing short-term and long-term savings initiatives. This ensures that ideas don’t get lost that may be valuable down the road. Since savings initiatives within an organization come from a number of areas – across departments, organizations and time zones – and in as many or more formats, attempts to capture this information can be daunting.
Until now, that is. In the recent 16.2 release, JAGGAER introduced Portfolio Savings Manager (PSM), a new savings management solution that moves the needle on how organizations capture, manage and track savings initiatives. PSM provides a central repository for initiatives and ideas – a single source of truth that eliminates the fragmentation of information stored in different systems, locations and formats. That makes it easier for users – from buyers to the CEO – to identify, prioritize, authorize and execute savings initiatives.
But what about identified savings initiatives that aren’t selected and / or prioritized to be executed on now? Maybe you’re roped into an unbreakable contract with the current supplier. Perhaps there are some additional capital costs that have to wait a few quarters.
What happens to those initiatives?
Like my lists, it’s easy to put them aside, get new priorities and then forget about the original ideas. But PSM never forgets. In fact, you can even set reminders (say six months before the current contract expires) to look at the initiatives again.
Now, if only I could get it to remind me to go to Yosemite.