Now that you’ve read our last two posts and understand that you need to get optimized (and analytical) if you want to get cognitive, hopefully you’re ready to get optimized but you just don’t know how.
The four-part answer is pretty easy.
1) If you are using a sourcing platform from a modern provider that offers optimization, acquire the module and start using it.
If you’re already using (SAP) Ariba, Coupa [Trade Extensions], EC Sourcing [with bidmode Inside], Jaggaer (Indirect/Direct/Advantage), Keelvar, or SynerTrade, acquire the sourcing module, turn it on, and start using it. We know that not all platforms are equal (as made clear by the Optimizer Persona in the Spend Matters Solution Maps), but all are more than enough when you are just beginning your sourcing journey. Plus, the majority of these providers are all actively developing their optimization solutions and should stay ahead of your optimization needs.
2) If you are not using a sourcing platform, get one that has decision optimization.
We gave you six names, and these six names can all help you. While we have our preferences, the right solution is utterly dependent on your organization size, industry, dominant categories, geography, and culture and which provider matches your profile the best. There’s only six names, and a relatively short RFI should allow you to quickly zero in on the 2 or 3 that are most likely the best for you.
3) If you are using another sourcing platform and it is not meeting your needs and can replace it, replace it with an optimization-backed sourcing platform.
A few of these providers have a large customer base that consist of those that have switched from another provider with a solution that didn’t meet their needs and, thus, have a lot of experiencing with change management, fear squashing, migrating your data over, and getting you up and running on the right processes quickly. Simply craft the right RFI and you will quickly zero in to the 2 or 3 providers that will likely be the best fit in this situation.
4) If you are using another sourcing platform and it is meeting your needs, can’t be replaced at the present time, or both, augment it with an optimization-backed sourcing solution just for those events where optimization is a must-have.
You just bought Source-to-Contract or Source-to-Pay Solution X a year ago and you know that Finance / Operations / etc. will not approve a new solution for at least a few years because they still believe systems should last five to ten years. In that case, you get a pin-point solution that you use to augment your current solution as a bolt-on. Two of the providers in particular that we mentioned — EC Sourcing with bidmode Inside and Keelvar — are small, mid-market focussed, pin-point best of breed optimization-backed RFX solutions that start in the six figure range (or five figures on an event basis) that can be used to augment a traditional Sourcing platform at a low cost and deliver a high value.
And, no matter what Don’t Say It’s Not That Easy. It is. Yes it’s work to create the technology RFX, reach out to the vendors, make the short-list, do the negotiations, select a (new) vendor, create a transition plan, create an integration plan, and get it done. But making the decision to get a platform that will save your organization an average of 10%+ year-over-year and taking action to do it is easy. And there’s no situation there isn’t an answer for. So, just do it. You won’t regret it.