Trying to select the right spend analytics tool ?
Utilize our frameworks to analyze and different spend tools to choose one that fits best with your organizational technology, people and processes.
Tool adoption often proves to be difficult. Whether it cleaning the supplier master data, testing or creating process that would help your team utilize the tool, we'll help you.
Unable to adopt an existing spend tool?
The guide to world-class spend tool adoption.
SPEND TOOL ADOPTION
Selecting the right tool
Having the right framework for evaluation is important. Often the need to select an S2P or Spend Analytics tool arises from observing an on-going problem or as a transformation initiative. Most often, the three buckets of evaluation are people, processes and technology. Below are a few specifics on what might be important to include in these buckets.
1. Number of employees in the procurement organization/department
2. Number of Business Units
3. Hierarchy of organization/Organizational Structure
4. Variety of Business Roles
5. Background and experience of employees that will utilize the tools
1. Spend under management
2. Percentage of paper vs. digital Invoices
3. Contract management process or system
4. Documents management system
5. Complexity of categorization - UNSPSC or customized
6. Frequency of refreshes
Technology and Data
1. Number of systems including ERP systems, expense management systems, etc.
2. File formats and schema across different system
3. Quality of spend data and level of cleansing and normalization required
The single most important consideration is the goal of the organization. What is the goal for spend analysis? Is the organization looking to uncover opportunities for savings to achieve a cost-optimization goal? Or is the organization looking to mitigate supplier risk? Considering both short-term and long term goals become important for the organization in determining which features are non-negotiable and which ones are a mere accessory.
Maximizing and measuring adoption
Not always are organizations able to adopt a tool successfully. Lack of full utilization is often why organizations fail to generate the end-to-end ROI. Below might be a few reasons for low adoption.
Why might adoption be low?
Tool subscribed to/bought by someone who has now left the organization
Technical problems, tool is too complex and not user-friendly
Testing problems – fear of integrating with current systems and data
Lack of personnel and resources to run/utilize the tool
Personnel is busy with day to day tasks and not able to devote time to assess and create road map for adoption
Lack of proper training of the tool
Services we can help with:
Testing and user training
Support tool problems escalation with the vendor
Provide resources/experts to run the tool for data extraction, cleansing, enrichment and categorization
Set up dashboards to help the stakeholders with spend visibility on Tableau and MS Power BI, accessible from all platforms.