In our previous blog post, we looked in more detail at how to choose the right spend analysis system for you. Here is a short checklist to help you make your choice.
- Identify Your Needs: Understand the specific needs of your company for spend analysis. Determine whether you require one comprehensive solution or two complementary systems – a centralized one for data storage and a standalone for free-form analysis.
- Research Vendors: Spend adequate time researching various vendors. Look for information in archives of Sourcing Innovation, Spend Matters Pro, or Gartner Cool Vendor write-ups. Keep in mind that vendors vary in size, service offerings, and focus areas.
- Analyze Vendor Offerings: Evaluate vendors based on their feature offerings, the depth of these features, and their customization capabilities. Also, consider their integration with other modules and how they align with your organizational needs.
- Consider Source-to-Pay Capabilities: Note whether the vendor offers comprehensive Source-to-Pay capabilities, including Sourcing, Supplier/Vendor Management, Contract Management, e-Procurement, and/or e-Invoicing/Accounts Payable/Invoice-to-Pay.
- Seek Expert Opinion: If you find it challenging to compile a shortlist of vendors, consider seeking the help of an expert who can guide you based on your specific requirements.
- Determine the Focus Area: If your organization has considerable Marketing, Legal, or SaaS spend, consider vendors who specialize in these areas.
- Perform Detailed Analysis: Conduct a thorough analysis of your spend, processes, and needs. This will help you to judge potential solutions better.
- Seek Professional Help: If analyzing your needs and processes seems daunting, consider getting professional assistance for gap analysis and RFI creation.
- Consider Implementation Strategy: Understand that all modules in Source-to-Pay are important. However, since you cannot implement them all at once, strategize to implement one module at a time based on the insights gathered from the spend analysis.
- Strategic Sourcing, Contract, and Supplier Management: Evaluate these aspects critically, considering the role each plays in your spend management strategy. While strategic sourcing identifies savings, it's the contracts that guarantee them. And, effective supplier management ensures those guaranteed savings are realized.
Remember, choosing the best spend analysis system is a process. It requires a combination of diligent research, thoughtful analysis, and strategic decision-making.
