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SCANMARKET

Our eSourcing Philosophy

You understand the “how”, but are you thinking about the “why”?

Author
Date

2018/04/10

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At Scanmarket, we consider ourselves experts in eSourcing and we have a long history and many accolades to back it up. We understand the technology, techniques and processes associated with building and sustaining successful programs.

However, in the daily rush to help customers, build the next version of the platform, and take care of our people, we sometimes get caught up too much in the “how”, the “what” and the “when” and forget to think about the “why”.

That’s why we at Scanmarket periodically like to step back and remind ourselves WHY we do all these things that keep us so busy every day. Please note that none of these factors are new or obscure. Instead, they are guiding principles that inform the actions we take every day.

The Top 5 Principles of eSourcing:

  1. Transparency wins
  2. It just plain works
  3. Keep it simple
  4. t’s not about the technology
  5. Get everyone involved

1: Transparency wins

In our industry, people speak most often about savings as the main value driver in eSourcing. However, what we are all really doing is creating more efficient and transparent markets in the purest economic sense of the word . By bringing together more buyers and sellers, and giving them all the same information, we are better able to determine what the true market price is for a good or service. This benefits all market participants over the long haul by removing misinformation, side deals and other barriers to the efficient working of the market whether it is for equities or paper clips.

2: It just plain works

There’s no shortage of information out there on the benefits of eSourcing. A simple Google search will turn up a host of studies on the various value drivers and associated ROI. Still, a significant portion of organizations have not made it a part of their standard operating model. We believe it is part of our mission to help those organizations “see the light” and make eSourcing part of their “day-to-day”. After all, you’d never find a carpenter pounding a nail with his fist so why should you find a buyer conducting a negotiation or RFP without the right tool?

3: Keep it simple

Making eSourcing easy enough for everyone to participate is a core piece of Scanmarket’s overall philosophy and it’s hard to miss if you look at our material over the years. There’s a reason that we include it so often: if there’s any one thing you can do to promote the success of your program, it’s to make the process accessible and simple so that more participants take part. In the words of Albert Einstein, “Everything should be made as simple as possible, but not simpler”.

4: It’s not about the technology

While it might be heresy for a software company to say this, it really isn’t about the technology. People make markets happen. Technology just helps move them along. You may have the most advanced and intuitive platform available but, if the participants don’t believe it’s in their interest to participate, the market will not function. There’s a good reason that Procurement is often referred to as a “sales” function. We are selling, both inside and outside our organization, the idea that participating in our programs and projects will benefit our internal stakeholders and our suppliers.

5: Get everyone involved

Similar to the need for making transparent and efficient markets, we feel strongly that eSourcing works better when everyone is involved. There are many philosophies about how to best structure your organization to achieve this, but the key message is to share the expertise, share the resources, and do whatever is necessary to get successful eSourcing happening on all levels of your organization. A Center of Excellence shout not be the only place eSourcing happens. It should be the coach helping others be successful. 

A wise man once told us that, each day when you come to work, you will have two types of things to do: Things that are important and things that are on fire. You will always do the things on fire first but make sure you carve out time once in a while to think about the things that are important. Understanding and articulating your eSourcing philosophy is important.

For more information on these approaches or to learn more about how Scanmarket can help you achieve your business objectives, please visit us at www.scanmarket.com or contact your Scanmarket account manager.

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