Lessons learnt from the School of hard knocks:

One problem often encountered at the start of a Total Spend Management programme is deciding which tools to implement and in what order. Should a company start with Vendor Management? or perhaps begin with an automated Procure-to-Pay system? Debating the pros and cons can lead to "paralysis by analysis".

At MyBiz, we are firm believers of the  ‘Quick Wins’ Approach, as this will:

i) Establish the credibilityof the eProcurement programme, and

ii) Help to generate funding for the rest of the programme.

An early spend analysis will almost always uncover some areas where quick win savings can be made. These early savings can then be used to invest in a broader Spend Management programme. For Chief Procurement Officers, there are a few key lessons learnt in our 16 years of implementing Spend management programmes:

Start a project you can finish

Ensure that the project is within your authority, control & influence and that it is deliverable by your department & those reporting to you. Set specific measures of success with direct report to the CEO (or immediate superior). As a result, initial projects should usually be small, specific and narrow, but with measurable savings

Build a working business case, not a complete proposal

Creating a comprehensive, all encompassing, end-to-end proposal is too idealistic and therefore should be avoided - Go for quick wins with significant results and share risks and rewards with service and solution partners. Presentations to the Board should be made with results, so avoid Board room level until you have specific results to share!  Develop internal champions who will speak of your project’s successes

Work within your available budget

Project Budget should be approved with funds set aside and therefore available. Set measurable results and go for what is within approval limit
Generate the results to build up for larger budget to a spread benefits wider through the company.

Leverage on business partners who can work with you

Unless you have spare resources who are under-worked, always consider getting vendors who are willing to jointly work through the project with you
Do not keep selected vendors at arms length, work closely with them to achieve the desired results.

Our experience has shown the following approach to be an effective way to implement an eProcurement programme:

1. Implement eAuctions as soon as possible. These can generate clear cash savings for funding further investment in eProcurement.

2. Implement P2P (Procure to Pay) to make the procurement processes as efficient as possible and to start capturing data on spending patterns as useful management information.

3. Implement eSourcing solutions to improve professionalism of procurement staff and ongoing supplier relationships.

MyBiz Rel@tionNet is a proven methodology for enabling buyer organisations and their suppliers to become operational within the shortest time. It utilizes a Conference Room Pilot that allows visualisation of specifications and features so that sign-off is accurate and fast. Our 3E implementation philosophy allows rapid deployment and enables users to achieve maximum productivity quickly.