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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
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.
“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
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

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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