FINANCE & SPEND
Software without a goal There are several technologies available today to assist with cost-reduction strategies; however David warns that treating technology as a solution rather than as a tool is a major mistake.“ Organisations often invest in sophisticated software without a goal, hoping that it will create profit without clearly defining the processes they want to improve. This results in increased technology costs and inefficiencies,” says David.
Implementing technology can create additional problems when the transition is not managed. Procurement transformation usually impacts more than just one department; it impacts finance, operations, suppliers, legal teams and business stakeholders.
“ Technology can provide value when it has a clear way that it supports operations. If its adoption isn’ t carefully considered, even the best software can fall short,” says David.
Matthias goes further, arguing the search for a single fix is itself the mistake.“ Procurement leaders look for one solution that solves all their problems,” he says.“ What we actually need is a portfolio of solutions that work together in a flexible, adaptive framework, where you can swap out tools as things change. There is not one solution in place today.”
Beyond the edge of procurement So what does it actually look like when procurement gets this right?
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