Excuses and Alibis Webinar slides (reworked)
Excuses, Alibis and Reasons Why Overcome the most common e-Procurement Objections
Our Speakers
Anthony Rotoli Co-CEO Revenue ESM Solutions
Steve Lunden Director of University Purchasing Gonzaga University
© 2016 ESM Solutions Corporation
No procurement, purchasing or finance professionals were harmed in the making of this webinar.
© 2016 ESM Solutions Corporation
© 2016 ESM Solutions Corporation. All rights reserved.
About Gonzaga University ✦
418 academic staff
✦
16 straight years to NCAA in Men’s basketball
✦
7,352 students
✦
ESM customer for 2 years
✦
P-card based system
“We Don’t Have Budget or Headcount”
“We Don’t Have Budget or Headcount” ▪ ▪ ▪ ▪
Organizations are faced with budget cuts & reduced headcount The Procurement function is often viewed as expense (i.e. “Let’s cut!”) Work piles up when people leave A vicious cycle beings…
▪
How do you Overcome this?
▪
Reality checks: • Transaction-level cost savings. Immediate visibility • Positive budgetary impact (ROI!) within a few months • Headcount is a non-issue with an intuitive shopping environment • Don’t forget “free freight”
© 2016 ESM Solutions Corporation
“We Don’t Want to Lose Control”
“We Don’t Want to Lose Control” ▪ ▪
Everyone wants control and flexibility, but at what cost to the organization? Without guidance or automation you cannot do it effectively
▪
How do you Overcome this?
▪
Reality Check: • Keep it simple – Empower, but coach the spend • Direct to the lowest price • Line item detail • Oversight on grant spending
© 2016 ESM Solutions Corporation
“We Have Very Specific Needs”
“We Have Very Specific Needs” ▪ ▪
All organizations have specific requirements Processes vary as well • Spend limits • PO vs P-Card…
▪
How do you Overcome this?
▪
One-Stop Shop does not need to be vanilla Support the user community on what they need to see and when Focus on the end user and automate the process for them not the highest level
▪ ▪
© 2016 ESM Solutions Corporation
“It’s Too Complicated and Will Take Too Long”
“It’s Too Complicated and Will Take Too Long” ▪ ▪
Thank you to previous ERP projects (NOT!) • They always run over time and budget ERP has procurement features but not the same
▪
How do you Overcome this?
▪
ERP’s are built from ground up for accounting • Not for end users and not for Procurement ERP UI is not user friendly (think: green screen) • eProcurement is more eCommerce-centric eProcurement systems provide positive returns in mere months
▪ ▪
© 2016 ESM Solutions Corporation
“It Doesn’t Solve the Whole Problem”
“It Doesn’t Solve the Whole Problem” ▪ ▪ ▪
“It’s only useful for certain types of spend…” (Wrong.) “I have spend with non-catalog type vendors…” (No problem.) “We have to buy from grants...” (Let’s do it!)
▪
How do you Overcome this?
▪
Identify high volume transactions and low dollar amount per transaction vendors • Move these vendors to the procurement solution first ▪ Cost reductions typically immediate (On-Contract) • Frees up staff processing Enables procurement teams to be strategic • Create value with Procurement Organization • Sets stage to add greater value by more fully utilizing the system and to bring in other areas of spend.
▪
© 2016 ESM Solutions Corporation
“Our ERP System Has an eProcurement Module”
“Our ERP System has an eProcurement Module” ▪ ▪ ▪
Yeah. …but no. ERP’s are designed for Finance and HR not end users End users do not have an easy time navigating these solutions • More costly to implement and train users
▪
How do you Overcome this?
▪
eProcurement works that way Purchasing works • Provides flexibility to manage a process Steers users to contracts not available in ERP Provides tools to analyze spend • Negotiate better contracts and be more compliant
▪ ▪
© 2016 ESM Solutions Corporation
“What If Nobody Uses It?”
“What if Nobody Uses It?” ▪ ▪ ▪
The four letter word “Change” Perception of loss of power and choice I’ve been doing it this way for 30 years
▪
How do you Overcome this?
▪ ▪
End users shop like they do at home More suppliers available in one place • Avoid circumventing the process ▪ Provides purchasing control to mitigate errors and risk eCommerce aids in adoption
▪
© 2016 ESM Solutions Corporation
About the Cal State System ✦
23 Campuses
✦
22,276 academic staff
✦
22,088 administrative staff
✦
446,530 students
✦
“The 1000 mile campus”
✦
3 million alumni worldwide
About the Ivy Tech System ✦
30 Campuses
✦
14 State Regions
✦
9,396 academic and administrative staff
✦
200,000 students
✦
The nation’s largest accredited statewide CC system
✦
http://www.esmsolutions.com/ivy-tech-case-study/
© 2016 ESM Solutions Corporation
Announcements ▪
Next Webinar: Six Steps to Blissful Contract Management • February 16, 2016 • http://go.esmsolutions.com/blissfulcontractmanagement
▪
Sourcing Solution: Open Beta
Additional Resources ▪
Weekly Solution demonstrations http://www.esmsolutions.com/events/
▪
Cal State Webinar http://www.esmsolutions.com/project/california-state-university/
▪
Ivy Tech Case Study http://www.esmsolutions.com/resources/ivy-tech-case-study/
▪
ERP vs eProcurement http://www.esmsolutions.com/project/erp-vs-eprocurement/
▪
P-Cards http://www.esmsolutions.com/project/its-time-to-build-a-profitable-p-card-program/
Learn more @
http://www.esmsolutions.com/resources/
Our Speakers
Anthony Rotoli Co-CEO Revenue ESM Solutions
Steve Lunden Director of University Purchasing Gonzaga University
© 2016 ESM Solutions Corporation
No procurement, purchasing or finance professionals were harmed in the making of this webinar.
© 2016 ESM Solutions Corporation
© 2016 ESM Solutions Corporation. All rights reserved.
About Gonzaga University ✦
418 academic staff
✦
16 straight years to NCAA in Men’s basketball
✦
7,352 students
✦
ESM customer for 2 years
✦
P-card based system
“We Don’t Have Budget or Headcount”
“We Don’t Have Budget or Headcount” ▪ ▪ ▪ ▪
Organizations are faced with budget cuts & reduced headcount The Procurement function is often viewed as expense (i.e. “Let’s cut!”) Work piles up when people leave A vicious cycle beings…
▪
How do you Overcome this?
▪
Reality checks: • Transaction-level cost savings. Immediate visibility • Positive budgetary impact (ROI!) within a few months • Headcount is a non-issue with an intuitive shopping environment • Don’t forget “free freight”
© 2016 ESM Solutions Corporation
“We Don’t Want to Lose Control”
“We Don’t Want to Lose Control” ▪ ▪
Everyone wants control and flexibility, but at what cost to the organization? Without guidance or automation you cannot do it effectively
▪
How do you Overcome this?
▪
Reality Check: • Keep it simple – Empower, but coach the spend • Direct to the lowest price • Line item detail • Oversight on grant spending
© 2016 ESM Solutions Corporation
“We Have Very Specific Needs”
“We Have Very Specific Needs” ▪ ▪
All organizations have specific requirements Processes vary as well • Spend limits • PO vs P-Card…
▪
How do you Overcome this?
▪
One-Stop Shop does not need to be vanilla Support the user community on what they need to see and when Focus on the end user and automate the process for them not the highest level
▪ ▪
© 2016 ESM Solutions Corporation
“It’s Too Complicated and Will Take Too Long”
“It’s Too Complicated and Will Take Too Long” ▪ ▪
Thank you to previous ERP projects (NOT!) • They always run over time and budget ERP has procurement features but not the same
▪
How do you Overcome this?
▪
ERP’s are built from ground up for accounting • Not for end users and not for Procurement ERP UI is not user friendly (think: green screen) • eProcurement is more eCommerce-centric eProcurement systems provide positive returns in mere months
▪ ▪
© 2016 ESM Solutions Corporation
“It Doesn’t Solve the Whole Problem”
“It Doesn’t Solve the Whole Problem” ▪ ▪ ▪
“It’s only useful for certain types of spend…” (Wrong.) “I have spend with non-catalog type vendors…” (No problem.) “We have to buy from grants...” (Let’s do it!)
▪
How do you Overcome this?
▪
Identify high volume transactions and low dollar amount per transaction vendors • Move these vendors to the procurement solution first ▪ Cost reductions typically immediate (On-Contract) • Frees up staff processing Enables procurement teams to be strategic • Create value with Procurement Organization • Sets stage to add greater value by more fully utilizing the system and to bring in other areas of spend.
▪
© 2016 ESM Solutions Corporation
“Our ERP System Has an eProcurement Module”
“Our ERP System has an eProcurement Module” ▪ ▪ ▪
Yeah. …but no. ERP’s are designed for Finance and HR not end users End users do not have an easy time navigating these solutions • More costly to implement and train users
▪
How do you Overcome this?
▪
eProcurement works that way Purchasing works • Provides flexibility to manage a process Steers users to contracts not available in ERP Provides tools to analyze spend • Negotiate better contracts and be more compliant
▪ ▪
© 2016 ESM Solutions Corporation
“What If Nobody Uses It?”
“What if Nobody Uses It?” ▪ ▪ ▪
The four letter word “Change” Perception of loss of power and choice I’ve been doing it this way for 30 years
▪
How do you Overcome this?
▪ ▪
End users shop like they do at home More suppliers available in one place • Avoid circumventing the process ▪ Provides purchasing control to mitigate errors and risk eCommerce aids in adoption
▪
© 2016 ESM Solutions Corporation
About the Cal State System ✦
23 Campuses
✦
22,276 academic staff
✦
22,088 administrative staff
✦
446,530 students
✦
“The 1000 mile campus”
✦
3 million alumni worldwide
About the Ivy Tech System ✦
30 Campuses
✦
14 State Regions
✦
9,396 academic and administrative staff
✦
200,000 students
✦
The nation’s largest accredited statewide CC system
✦
http://www.esmsolutions.com/ivy-tech-case-study/
© 2016 ESM Solutions Corporation
Announcements ▪
Next Webinar: Six Steps to Blissful Contract Management • February 16, 2016 • http://go.esmsolutions.com/blissfulcontractmanagement
▪
Sourcing Solution: Open Beta
Additional Resources ▪
Weekly Solution demonstrations http://www.esmsolutions.com/events/
▪
Cal State Webinar http://www.esmsolutions.com/project/california-state-university/
▪
Ivy Tech Case Study http://www.esmsolutions.com/resources/ivy-tech-case-study/
▪
ERP vs eProcurement http://www.esmsolutions.com/project/erp-vs-eprocurement/
▪
P-Cards http://www.esmsolutions.com/project/its-time-to-build-a-profitable-p-card-program/
Learn more @
http://www.esmsolutions.com/resources/
