Spend analysis, and esourcing platforms are dead.
Their teams are out of ideas, and it has been a while since that has been the case. Remove the fancy UI components and their flashy presentations, and look under the hood to see the adoption rates of their features. Most of the buyers will use only 3%~5% features of Spend analysis tools and esourcing platforms.
The widely used feature in spend analysis is exporting data to excel so that buyers can do their own dicing and slicing.
The widely used feature in esourcing is the issuance of tenders and the download of cost comparisons/attachments. Some might use them for sealed bid evaluations and issuance of POs.
Almost all esourcing is used for indirect procurements.
It is not the fault of the buyers but CPOs. Buyers have been tolerating the mediocre tools to get them out of the way! Here are the TOP 9 features CPOs MUST demand from spend analysis and eSourcing providers TODAY!
1.) Automated identification of Cost savings
2.) Community Intelligence on Suppliers and Prices
3.) Process optimization and compliance
4.) Supplier Management
5.) Negotiation Strategies by pointing our sourcing leverages
6.) Fraud Detection and Prevention
7.) Automated demand forecasting based on ERP data
8.) Risk Management in 2023 by mapping market cost drivers to sourcing events
9.) Hyperautomation in Shipment followups and Delay Alerts
10.) Step by step navigation on how to negotiate with a supplier based on data and community feedback
What are your thoughts? Are you demanding enough from your esourcing and spend analysis providers?
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