Signing up for an eSourcing Tool Isn't the Point, Actually USING It Is...

There's no shortage of analyst studies and metrics on the benefits of eSourcing. With savings as the perennial #1 goal for procurement, eSourcing remains the best and fastest way to get there.

Thursday, January 14, 2016
BY: Ole Nielsen, Chairman and Founder

The story is familiar:

  • You know that exercise is good for you; you've done it from time to time in the past and have always seen results
  • However, everyday life overtakes you and you never go as often as you'd like without a program you can stick to
  • So, you sign up for an annual gym membership hoping that paying for something will solve the issue
  • But without making it a part of your daily routine, it won't happen
  • If only there was a way to make it easy…

Just like exercise, the eSourcing value proposition is proven and well-documented.

  • 12-20% savings
  • 50% cycle-time reductions
  • Improved transparency and compliance

There's no shortage of analyst studies and metrics on the benefits of eSourcing. With savings as the perennial #1 goal for procurement, eSourcing remains the best and fastest way to get there.

According to Aberdeen Group

  • 68% of Best-in-class organizations employ eSourcing vs. only 45% of All Others.
  • Cost reduction / Increase savings is far-and-away the top business pressure for procurement teams and has increased in importance by 20% over the last year.
  • Best-in-class organizations are three times more likely than all others to use a fully-automated sourcing process.

According to CPO Rising

  • Strategic sourcing is a primary driver of savings for most procurement departments. Since savings remains the top procurement performance metric, the investment in tools and resources that can improve the team's capabilities and process (and thereby improve results) makes great sense 

Given all this, why is it that most organizations don't take full advantage of their eSourcing platforms? Anecdotal evidence across many companies suggests that the vast majority of organizations with an eSourcing platform ALREADY IN PLACE are running dozens of events each year rather than the hundreds or thousands they should be. More specific data will be coming with the results of the 2015 Scanmarket eSourcing benchmark survey.

So, how to get your organization to use more frequently the eSourcing tools already at their disposal? Use the lessons you've learned from the gym:

  • Make it easy
  • Make it part of your everyday routine
  • Have expert support available and affordable
  • Set goals and track against them
  • Make it fun

If you follow these simple steps, you can go from 20 eSourcing events a year to 200 or 2,000. You might also lose a few pounds in the process….