Today’s post is by Mike Figueroa, Manager of Customer Services at SafeSourcing
What prevents a business from reducing costs by engaging in eProcurement best practices? The most common obstacle we see is simply a limitation in mindset, or the lack of will to change practices that maintain the status-quo. eProcurement practices have been around for as long as the internet has, and yet we still find businesses that aren’t aware of the most up to date tools for sourcing, and for whom suggesting a change in practice is akin to blasphemy. What is the barrier to change, and how can you overcome internal objections to improving procurement practices within your organization?
A concept that has come back into the spotlight this election cycle is The Overton Window. This concept is sometimes called “the window of discourse”, and signifies the range of ideas that your audience will accept. Though typically applied to political ideas, it simply relates to what ideas a group of people is willing to consider, and not willing to consider. However, the effort to enact any type of change within an organization will come up against this concept, and will require that The Overton Window be widened. Once the window is widened/the range of concepts willing to be considered has grown in scope, you can begin to garner buy-in of improved processes. So how can we accomplish this in the procurement space? Here are a few recommendations:
- Let the results speak for themselves: We run risk-free pilot events for new customers to demonstrate what can be accomplished with eProcurement practices. We routinely saving upwards of 20% on spends in excess of a million dollars using our process. Seeing one category save hundreds of thousands of dollars can quickly get your team to see the possibilities open to them for other categories across the business.
- Implement cost reduction goals: If you create goals that can’t be accomplished by maintaining the status-quo, your team will have to open their expectations to considering new possibilities. “Necessity is the mother of all invention” as they say.
- Find examples of being overcharged: We often do analysis of a company’s spend categories and uncover situations where companies are being charged 50% more for products/services than other clients of ours being charged. The only difference is that they’ve never addressed that spend and taken it out to market. If your boss isn’t interested in eProcurement, find a spend he’s losing money on that a category RFP has high historical savings in to demonstrate how much money is being left on the table with current purchasing practices.
For more information on how SafeSourcing can assist your team with this process or on our “Risk Free” trial program, please contact a SafeSourcing Customer Service Representative. We have an entire customer services team waiting to assist you today.