Today’s post is by Dave Wenig, Vice President of Sales and Services at SafeSourcing.
Momentum is important in eProcurement. Without establishing and maintaining momentum, even the best planned cost savings initiatives will stall out and possibly fail. In my experience, the greatest enemy of any cost savings initiative is the lack of momentum. When an organization is starting their eProcurement journey, momentum has typically not yet been established. So, the question is; how do you get momentum? One of the best ways to establish momentum is through getting a successful start to eProcurement. At SafeSourcing, we typically start with a no risk Pilot Agreement so that an organization can both assess the value of such a program and also share the results to create excitement about cost reductions.
Let’s assume that to ensure enough momentum, we’re looking for both mass and velocity and consider what each of these looks like in eProcurement. Both are critical to build and maintain momentum.
We might look at mass as the scope of the project. To build momentum, include as many spend categories as is possible. To identify categories for eProcurement, an organization might consider a spend analysis service like SafeSourcing’s SafeSpendAnalysis which will review the organization’s annual spend and identify opportunities for cost reduction.
Velocity is equally important because the organization will need to complete projects frequently and with regularity in order to keep the hard earned excitement. Without velocity, the cost savings initiative is at risk of being forgotten or pushed aside in favor of faster moving projects.
With both mass and velocity present, creating a high level of engagement within the organization will be relatively easy. Momentum will naturally be present and will be continually fueled by the overall scope and success of the cost savings initiative.
I believe that Newton’s law of motion applies in eProcurement. An object at rest stays at rest and an object in motion stays in motion. It’s better to stay in motion.