Today’s post is by Dave Wenig, Director of Sales, North America at SafeSourcing.
If you’re a follower of eProcurement and a reader of our blog and other great blogs out there, you likely understand that there are many different ways to leverage eProcurement in an organization.
Chiefly, we recognize two distinct types; those that are software or platform oriented and those that are service oriented. Both types may refer to their offering as Software as a Service (SaaS). Setting bias aside, I can acknowledge that there are pros and cons for each and that both have their merits. Picking back up my bias, I’d like to elaborate on some of the reasons why we recommend choosing an eProcurement provider with a service oriented approach. You might think of it as Full-Service Software as a Service (FSaaS).
First, and not to sound like a broken record, is time to value. When you’re standing up a new eProcurement platform, you have to be conscious of how long it will take before the results – your savings – are realized. When you work with a service oriented provider, you can lean on your provider during the first weeks and months as your organization gets up to speed. The provider can offer intellectual property (IP), expertise, staff augmentation through customer services, and the platform itself. The combination of these offerings is what will, ultimately, provide fast time to value. If you’re doing it right, results should be realized in the current quarter.
Second is cost. While it might seem as though the software or platform only options will be the lower cost alternative to the full-service options, you have to look at the total cost of ownership (TCO). Again, while the upfront software or platform only costs may seem low, you have to be careful of the factors that will drive your actual costs up. These might be user training, support, additional features, or additional user licenses. Also, to stand up an eProcurement platform without the assistance of a full-service provider, an organization should be prepared to allocate several FTEs to use the tools, work with suppliers, and provide supplier support. The fully loaded cost of these employees should be factored into your TCO estimate and should not be underestimated.
Many of the most successful clients that I have worked with have found their success using a full-service provider. Some have tried a software or platform only approach as well and have ultimately determined that the right approach is full-service.
Dave Wenig is the Director of Sales, North America at SafeSourcing. Dave or any member of the experienced team atSafeSourcing would be happy to discuss how SafeSourcing can help you with your eProcurement planning. For more information, please contact SafeSourcing.
We look forward to your comments.