Corporate Purchasing Leaders Challenged to Manage Interface With 40+ Software Solutions
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The document discusses the complexities faced by chief procurement officers at mid to large-sized organizations due to managing over 40 software systems that impact purchasing. It highlights the strategic and operational challenges these systems create and poses questions about the value and effectiveness of such software solutions. Key topics for discussion include the relationship between technology and processes, the determination of necessary solutions, and examples of improved outcomes resulting from these tools.
Corporate Purchasing Leaders Challenged to Manage Interface With 40+ Software Solutions
- 1. CPO Forum Discussion Managing Software Solutions For Value A ‘NORMAL’ PURCHASING PROFESSIONAL AT A MID TO LARGE SIZE ORGANIZATION INTERACTS WITH 40 OR MORE SOFTWARE SYSTEMS MANAGING THE INTERFACE OF THESE SYSTEMS IN A WAY THAT CREATES VALUE IS A KEY RESPONSIBILITY FOR CHIEF PROCUREMENT OFFICER
- 2. Purchasing Sits at a Busy Intersection By its nature purchasing deals with virtually all departments Purchasing directly touch's 50% of the organizations total revenue At each interface point it seems there is a software solution to interface with that has different characteristics (enterprise, homegrown, cloud based, proprietary, legacy commercial etc…) The 40 or more interfaces create Strategic and Operational Challenges yet do not necessarily result in improved performance for purchasing.
- 3. “SHORT LIST” OF THE 40+ SOFTWARE SOLUTIONS PURCHASING PROFESSIONALS USE ERP System Corporate Data Warehouse Corporate Analytic Solution Planning System MES CRM Best of Breed Purchasing Solution(s) Spend, Contract Management, Sourcing, Catalog Management E Signature System IT Tracking System Service and Hardware Inbound Freight Tracking System Supplier Punch-out and normal websites MS Office HR Employee Portal including punch outs for 401 And benefits External Work related social media sites (Linked In, Professional Orgs) Inventory System Internal QA system Field Support Systems Internal resource website for Marketing Templates, Presentation Info, company news Synchronized Email to personal Mobile device Corporate travel booking tool On average 3 personal Aps that also are relevant to work ex. Maps, currency, business news feeds Customer Support tracking system for key suppliers P Card System Travel and Expense Card System Accounts Payable System Invoice Tracking/Supplier Payment System Internal Expense Reporting System Share point Department Shared Files Document Control System Purchasing Transaction System Key Supplier hosted sites Corporate Social Responsibility reporting internal and external Purchase Request Systems Internal KPI reporting systems Video Conference Phone Conference
- 4. Discussion Topics What Solutions Actually add value How do the solutions themselves support broader goals Are people equipped to effectively use the tools Who determines what solutions are needed Relationship between process and technology How do we continually determine value of solutions Who is responsible in the organization for managing all these solutions What role does Purchasing play given that new solutions and renewals typically would be purchased although some are free initially Does it feel like the explosion of solutions is helping Any examples of what is better as a result