New White Paper – Secrets Revealed Behind eSourcing Success
June 26, 2015
There is a growing gap between organisations simply deploying eSourcing and those adopting and embedding them into their sourcing strategy, our latest white paper, published this week, reveals.
As eSourcing technologies continue to advance, the paper reports that this gap is set to widen, with companies without a real mandate behind their eSourcing strategy falling further behind.
The paper brings together research findings with unbiased commentary and analysis from leading procurement (and specifically eSourcing) practitioners including:
Matt Oxley – Procurement consultant with Barchester Healthcare and previously with Nuffield Health, BMI Healthcare and Four Seasons Health Care.
Dan Quinn – Vice President with procurement and supply chain practice Smart Cube.
Strategic Sourcing Manager – Our third expert is with a leading professional services company.
The expert panel builds a comprehensive picture of eSourcing preconceptions, practices and predictions, and discusses many key issues facing procurement practitioners to reveal the secrets behind why some companies are successful at eSourcing, while others struggle.
The report highlights that critical success factors behind a shift in the way companies embrace eSourcing stems from top-level support and buy-in. “Support from the top is essential otherwise it gets side-tracked and doesn’t get the investment it needs (in money, time and training)” says Dan Quinn. “Like any change management project, if you don’t make it part of business as usual and encourage and support its adoption, people will pay it lip-service and then go back to bad habits.”
A starting point for bringing in a more strategic view is to look at all contracts up for renewal 18 months or two years out – analyse whether they can be auctioned and categorise as red, amber and green. There’s likely to be a huge swathe of spending in the amber category. This is worth tackling, says Quinn, because if you get even a 50% success rate there are some major savings to be made. He advises that once you’ve reached critical mass, you should mandate auctions. “Everything must be auctioned unless you can prove to me why it shouldn’t. You just need creativity.”
Matt Oxley suggests that about 80% of spending should go through eSourcing (not just eAuctions but eRFXs also) while The Strategic Sourcing Manager adds: “If you can negotiate it, you can auction it”
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