As the new year begins, businesses are beginning to execute on their 2021 strategic plans. For many companies, this means applying the learnings of 2020 and the failures of manual processes during the pandemic. A key area of opportunity is the automation of procure-to-pay processes. Unfortunately, for many businesses, the pandemic has squeezed budgets and limited IT spending.
Rethinking Investment Strategies
Gartner published a report entitled, “Strategic Planning: Assessing the Risk and Value of Procurement Applications” that explores strategic challenges and offers recommendations to application leaders in sourcing and procurement focused on automating their procurement processes.
The report notes that, “the procurement application space is vast, and with a diverse set of solutions this makes the challenge of building a strategy very complex.” Businesses that are operating with constrained budgets, limited resources, and global uncertainty will struggle to implement a comprehensive procurement technology infrastructure. The report highlights some of the considerations to be made that can help improve the outlook for positive returns while cautioning of the risks of inadequate planning or attempting to address larger pain points initially.
Shorter Time to Value
According to Gartner’s analysis, “Whether you are just starting your procurement and sourcing investment program, or you are updating existing solutions, quick wins at the outset are essential.” We believe, the report illustrates the compelling level of impact that P2P has on return on investment.
When discussing the type of strategy that can drive a shorter time to value, the analysis points out that the investment should, “Relieve immediate business pain points, have relatively lower implementation cost and annual licensing fees, require implementation time that is less than one year, ideally six months or less, impact only a small number of functional users, and impact existing systems with a limited number of integrations required.”
Quick Wins with BuyerQuest
We believe the report highlights the importance of simplifying and streamlining processes to user adoption. Specifically, Gartner notes, “Manual procurement processes motivate end users to go outside policy as it is easier and quicker to buy from consumer e-commerce sites.”
The impact of users purchasing outside of the procurement process impacts not only compliance but increases off-contract spend adding bottom line costs.
The BuyerQuest Procure-to-Pay platform was designed for ease of use and modularity. The purchasing interface is built like a business to consumer website with all of the compliance and controls. The modular design also allows for a staged deployment, allowing customers to achieve quick wins early.
Read the full Gartner report, “Strategic Planning: Assessing the Risk and Value of Procurement Applications.”
Interested in understanding the impact of BuyerQuest to your business, visit our ROI Calculator.
Gartner, Strategic Planning: Assessing the Risk and Value of Procurement Applications, Micky Keck, 28 May 2020
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