Start Small, Prove the ROI, then Expand and Build on Success

14-08-2024 • 15 mins

This episode of The Procurement Software Podcast tackles the often-overlooked challenge of securing a budget for procurement technologies. Host James Meads provides actionable strategies to overcome this hurdle, emphasising the importance of starting small with pilot studies and opting for affordable, user-based software solutions. He also explores how procurement professionals can work smarter by reallocating existing budgets. Doing so can clearly demonstrate ROI to gain buy-in from financial decision-makers for larger investments. Tune in to discover how to successfully advocate for procurement tech investments and drive innovation within your organisation.

Start Small, Prove the ROI, then Build on Success

James delves into this question, discussing the common obstacles procurement teams face due to a lack of dedicated software budgets and the high ROI expectations from CFOs. Key strategies include launching pilot studies in specific areas, such as a single manufacturing site or country office. Then, leveraging affordable software options like entry level procure-to-pay platforms, SRM tools like Canopy and LUPR, contract management systems like Concord, and e-sourcing platforms such as Market Dojo. James stresses the importance of taking initiative by reallocating budgets from travel, training, or consultancy to fund these projects. Proving the concept and generating positive feedback can create momentum, leading to wider technology adoption within the organisation. Tune in for practical insights and strategies to navigate procurement’s budget challenges and drive digital transformation effectively.

Timestamps:

[00:01:31] - The Challenge: Lack of Procurement Software Budget [00:03:07] - Understanding CFOs and ROI [00:04:23] - Starting Small with Pilot Studies [00:06:19] - Building Internal Support and Testimonials [00:08:07] - Quantifying Productivity and Opportunity Costs [00:10:04] - Carving Out Your Own Budget [00:10:25] - Affordable Procurement Software Examples And that wraps up another episode of The Procurement Software Podcast! Thanks again for listening, and do please leave us a review on Apple Podcasts or rate us on Spotify. Every one helps! We'll be back at the same time next week, so see you there. If you want to learn more about Procurement Software, check out the useful links below.