Wednesday, 4 June 2014

Be the eSourcing hero

Targets. Based on savings, number of eSourcing events, other contract KPIs? What do you do? In procurement you quite literally have a myriad of different ways you can be assessed. This is an endless debate. Do you base on number of auctions? We have seen this carried out very well but we have also seen this abused where auctions are run with no thought. Sometimes you get what you measure. Target contract KPIs are a great way to move forward but add many layers of complexity to the process. There is no right or wrong way. However, this is not the reason for writing this article. 

We have spoken to many organisations where they set targets for eSourcing. Mostly we find these are based on either savings, user adoption or number of eSourcing events. These targets are normally not stand alone and there are other areas where the professionals are measured. However what we have seen over and over is that these targets can be limiting. eSourcing is easy to use. Most people use Amazon and eBay so why not eSourcing. The point is that these targets should not be something to aim for but they should be something to smash. We have seen many organisations that strive for adoption and ask for quotes for many users when year after year they only increase by one or two. We believe with an accessible platform, you should look at everyone using it, 100’s of eSourcing activities instead of just a few on the big ticket items. Why do this? Well, quite simply to ‘Be the Hero!’. 

Too cliche? Well think about it. If you smash those targets you may have a higher bonus but more importantly higher recognition. A better CV. Move up or even move on. To make this statement for a sales person would be more challenging given the competition and maturity in the market and the profession. However eSourcing is a perfect arena for this over-achievement. Saving several percent on purchasing spend puts many percent on profit, perhaps as much as a 1:10 ratio. It effectively makes you the salesperson and we know how much recognition they get. The time is right and you should be looking at exponential growth given the timing and the accessibility of the technology. So come on, what's stopping you?

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