Going back to basics – the e-procurement business case
Whether you are embarking on a fresh e-procurement programme or refreshing and renewing something that is already in place, a robust and compelling business case is critical to secure funding and support. There is a small a number of fundamental measurable benefits that underpin every e-procurement business case yet they are often overlooked in favour of more obscure, less compelling benefits.
On May 17th 2018, I will be hosting a webinar to review and examine the fundamentals of the e-procurement business case as well as some of the cost considerations. I’ll cover a wide range of topics including why we need a water tight business case, the real-world reasons to implement e-procurement, the fundamental measurable benefits, how to quantify measurable benefits and how to invest without spoiling the business case.
You can register here:
Why is the business case so crucial?
The business case is a foundation. It helps to define and articulate the objectives of a P2P program. It shows executives how savings or other benefits will be derived in order for them to buy in and agree funding and it provides some of the fundamental business metrics that can be put in place to measure success.
Why are business cases often so weak?
Despite a couple of decades of experience since e-procurement reach maturity in the late 1990s, we still see business cases that are not compelling:
• The objectives are ill-defined
• Benefits are not measurable
• Targets are not realistic or relevant
The fundamental elements
There are many elements that can be included in an e-procurement business case both benefits and costs as well as other factors specific to the organisation that is building it. But there are a small number of key fundamentals that need to be incorporated:
1. Benefits MUST be measurable
2. The measure of the benefits must be financial
3. The benefits must include quantifiable cost reduction in terms of operations and spend.
I hope you can make the webinar. If the time or date is not convenient, register anyway and we’ll send you a recording.