performance management? Inconsistent supplier
In an era where we are so dependent on technology and data, supplier management cannot continue to operate in a vacuum.
While many firms will report an increased investment in procurement technology, and there is much talk of procurement technology roadmaps, these often stop short of properly addressing the post-contract supplier management phase. Because it’s not just about efficiency and saving headcount, the business case for this phase is more difficult to define. The business case for investing in technology needs to be closely linked to the business case for supplier management itself. It needs to focus on delivering value – both current contract and beyond – and building a resilient management process in addition to resilient supply chains. An important consideration when planning investment in supplier management technology is to future-proof. The investment needs to be based on the long-term vision for supplier management, and while companies might be starting small, the investment needs to account for how supplier management will grow. Don’t get landed with a system that is great at performance management but won’t be able to accommodate relationship management,
innovation or sustainability. This is where a modular approach will be beneficial, allowing functionality to be added progressively. While the use of desktop tools seems attractive in terms of cost and flexibility, they are fraught with problems ranging from usability, transparency and auditability, to security. It’s also clear from the research that a central location for data and the ability to integrate and take data from other systems is key. The key challenges that remain in the area of technology are: • Defining a business case for technology that doesn’t simply rely on delivering efficiencies and headcount savings but takes business value into account. • Aligning any technology investment to the long-term vision for supplier management. • Transitioning away from the widespread use of desktop tools. • Driving adoption.
Don’t get landed with a system that is great at performance management but won’t be able to accommodate relationship management, innovation or sustainability.
Digitisation no longer equals a competitive advantage, it is merely an attempt to catch up. Align your technology investment with your vision: get real- time visibility with
SupplierBase. Request a demo today.
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