Given YouTube’s rising influence – or at least the time we’re all wasting watching silly clips – we decided to honor the namesake viral video with a Spend Matters research paper titled: A P2P Implementation Guide: Avoid the “Dumb Ways to Die.” Our thesis is that far too many companies get themselves into trouble with eProcurement and e-invoicing implementations when they don’t have to.
While there are roughly two dozen “legitimate” eProcurement providers with solutions across the Global 2000 and middle markets, there are hundreds of ways that companies and individual divisions have found to reduce their potential spend under management through various means, often unintentionally. Yet unintended, suboptimal decisions sometimes beget further unintended, suboptimal decisions. And thus begins a cycle where eProcurement and broader P2P (eProcurement and e-invoicing together) technologies fail to deliver on their initial savings and efficiency promises.
One of the most important steps in maximizing spend under management is learning from others that have been successful. This is especially true for organizations deploying solutions that provide a broader support ecosystem (e.g., peer-to-peer knowledge sharing events, automated process/KPI benchmarking) to help continually set and achieve increasing performance levels: end-user satisfaction, system compliance (like the use of POs for appropriate spend categories).
Readers can learn strategies and out-of-the-box thinking that separates these innovators in eProcurement and P2P from the rest of the pack in terms of:
- Maximizing the quantity and quality of spend under management
- Improving organizational, transactional, and vendor compliance to practical (but compelling) levels
- Improving demand management to implement the above in new ways
- Tapping vendor capabilities beyond traditional feature-function provisioning We also strongly recommend that readers peruse the broader Spend Matters research library for some additional insights on vendor selections and roll-out approaches for specific P2P technologies.
This report will delve into five composite “scenarios” examining ways that both large cap and middle market companies that have been able to maximize spend under management through various traditional and non-traditional deployment approaches for eProcurement. The scenarios include:
- Scenario 1: Finding the “Right Stuff”
- Scenario 2: Finding Approved Suppliers That Don’t Seem to Exist
- Scenario 3: Massively Enabling Suppliers Without Massive Cost and Effort
- Scenario 4: “Globalizing” P2P
- Scenario 5: Elevating P2P Internal Performance With Emerging Analytics
Smart people (and smart companies) often do dumb things. Whether it’s from default, neglect, ignorance, temporary aloofness or by habit, procurement (and A/P) organizations habitually fail to deliver on the types of eProcurement and e-invoicing results that original business cases and providers suggest is possible. In contrast to sourcing activities where some good behavior can make up for common ignorance or general poor form, the most challenging thing about P2P is that a single, poorly thought-out area can ruin an entire implementation.
To avoid stepping on that third P2P rail, click to download A P2P Implementation Guide: Avoid the “Dumb Ways to Die” for free today.
(Cross-posted @ SpendMatters)