It used to be that selecting a spend analysis solution was about functionality. Which systems could do what, how well could they do it, and how much did it cost. As spend analysis has matured as a function and as a platform, being able to provide the necessary functionality has become a requirement rather than an option.
Today’s spend analysis solutions must differentiate themselves on how quickly and easily they can be updated and how much context they offer for your data. Putting users in the driver’s seat is an advantage because it allows them to have greater control over their data and how it is categorized.
The difference between a mediocre spend analysis solution and a robust one is the difference between a circle and a sphere. Sure, a circle goes all the way around the center point, and it is the right basic shape, but it is still flat. A sphere, on the other hand, also goes all the way around, but in all three dimensions. It leaves no perspective of the center point unseen.
Everyone in procurement knows better than to run sourcing events and conduct analytics in Excel. So why are so many organizations still managing their sourcing pipelines using spreadsheets? Until recently, it was possible to make the case that there wasn’t a solution available to address that specific need – but not any more.
In 2012, Pierre Lapree, the former Director of Group Procurement at Adecco, founded Per Angusta to make it possible for procurement organizations to build and manage their sourcing pipelines in a way that actually improves their results over time.
As the scope and range of procurement solutions has expanded, they have become a veritable alphabet soup of S’s and P’s. Is your solution P2P? S2S? S2P? We have become so comfortable communicating in acronyms that we have stopped thinking about what they actually represent. And if the words have lost some of their resonance, what about those poor 2’s stuck in between them? They never get any thought at all. They simply allow us to bridge from the source to the settle, or from the procure to the pay.
And yet, more is represented by each “2” than we give it credit for. The transition between the letter areas of procurement’s responsibility is where value is either captured or lost. The quality of work at each part of an acronym largely dictates how successfully the next one can be executed.