7 Tips for Maximizing ROI on Procurement Software

Maximizing ROI from procurement software is crucial for delivering value to the organization. Implementing best practices, utilizing all features, monitoring performance, continuously improving, providing training, and integrating with other systems can help maximize ROI.

Maximizing the return on investment (ROI) from procurement software is crucial to ensure that the software is delivering value to the organization. A report by the Aberdeen Group found that companies using procurement software experienced a 27% reduction in procurement costs compared to those using traditional manual processes. Additionally, companies using procurement software reported a 25% improvement in supplier collaboration and a 20% improvement in supplier performance.

Many companies have seen significant benefits from using procurement software and have been able to maximize ROI. For example, GE implemented a procurement system and saw a 25% increase in productivity and a 15% reduction in procurement costs. Similarly, Dell Technologies implemented a procurement system and saw a 20% increase in productivity and a 15% reduction in procurement costs.

Here are some tips to help maximize ROI from procurement software:

Define clear goals and objectives: Establish clear goals and objectives for the procurement software before implementation. This will help you measure the ROI and identify areas for improvement.
Implement best practices: Implement best practices for procurement processes and ensure that your team is following them. This will help to ensure that the software is being used effectively and that you are getting the most out of it.
Utilize all features and functionalities: Ensure that your team is utilizing all the features and functionalities of the software. This will help to ensure that the software is being used to its full potential and that you are getting the most out of it.
Monitor and measure performance: Monitor and measure the performance of the procurement software regularly. This will help you identify areas for improvement and ensure that the software is delivering value to the organization.
Continuously improve: Continuously improve the procurement process and the software based on the performance data. This will help you ensure that the software is delivering value to the organization over the long term. Leverage FactWise’s holistic analytics to track your KPIs and ensure you always stay ahead of the curve.
Training and adoption: Provide adequate training and support to ensure that the software is being used effectively by the team, and that they are getting the most out of it. Minimize the need for trainings by choosing the easy-to-adopt, intuitive interface of FactWise S2P.
Integration: Ensure that the procurement software is integrated with other systems that your organization uses. This will help to ensure that the software is being used effectively and that you are getting the most out of it. With our Open APIs and quick, seamless integrations, FactWise is committed to creating a single source of truth across the procurement cycle.

In conclusion, maximizing ROI from procurement software is crucial to ensure that the software is delivering value to the organization. Establishing clear goals and objectives, implementing best practices, utilizing all features and functionalities, monitoring and measuring performance, continuously improving, providing adequate training and support and integration with other systems will all help to ensure that you are getting the most out of your procurement software.

Stawan is the founder and CEO of FactWise. Before founding FactWise, Stawan was the NA TMT-Procurement Leader at McKinsey. Passionate about procurement, Stawan has 15 years’ experience in enabling clients of all sizes to achieve business impact via procurement.