If your organization has recently implemented procurement software, it is important to measure the success of the implementation. Knowing how successful the implementation was can help you make future decisions about how to use the software, how to make any improvements, and what changes to make for the next implementation. Below are some steps and key performance indicators to help you measure the success of your procurement software.
Steps to Track Performance of Your Procurement Software
- Establish and track baseline metrics: These will be the metrics that you use to measure the success of the implementation. Common baseline metrics include cost savings, time savings, purchasing accuracy, and customer satisfaction. Once you have your baseline metrics set, you should track them regularly to see if your procurement software implementation is having the desired effect.
- Review user feedback: This could include surveys, interviews, or other feedback. It's important to gather data on how users are experiencing the software and if they are finding it user-friendly and easy to use. From this data, you can determine if there are any areas where the software needs improvement or if there are areas that can be optimized.
- Conduct a comparative study: Comparing the performance of your procurement software to other similar software solutions will help you to identify any areas where your software is lacking and can help you to make improvements. Additionally, it can help you to identify any areas where your software is excelling and can help you to further capitalize on those strengths.
Key Performance Indicators to Measure Procurement Software Success
Once you have established your baseline metrics and gathered feedback from users, you should look at key performance indicators (KPIs) that can show you how successful your procurement software implementation has been. Some of these KPIs may include:
- User adoption rates - This measures the percentage of users who are actively using the procurement software on a regular basis. High adoption rates indicate that the software is meeting the needs of users and is well-received by them. Global procurement leaders consistently rate FactWise as one of the most easy-to-adopt procurement software solutions in the market, due to its intuitive interface and customizable workflows.
- Time savings - This measures the amount of time saved by using the procurement software compared to traditional methods. Companies like Microsoft have reported saving up to 80% of their procurement time using a digital platform.
- Increased efficiency - This measures the improvement in processes and workflow as a result of using the procurement software. Companies like Amazon have reported a 20% increase in efficiency after implementing a procurement solution. FactWise enables up to 20% increase in efficiency alongside 31% increased oversight/governance.
- Cost savings - This measures the reduction in cost as a result of using the procurement software. Companies like Alphabet, parent company to Google, have reported saving up to 30% on procurement costs using a digital platform. FactWise enables up to 25% increased savings on direct spend across spend categories.
- Improved supplier relationships - This measures the improvement in communication and collaboration with suppliers as a result of using the procurement software. Companies like Walmart have reported improved supplier relationships and better supplier performance after implementing a procurement solution. FactWise empowers organizations to focus on strategic questions in supplier management by making it significantly easier for internal and external teams to collaborate on tactical areas.
Understanding the Drivers of Procurement Software Success
It's important to understand the drivers of success when implementing procurement software. These drivers can range from technical aspects such as usability and reliability to cultural aspects such as user adoption and user training. To ensure success, it is important to assess all of these factors before, during, and after implementation. This will help you identify any areas that need improvement and focus on those areas.
In addition to assessing the technical and cultural aspects of procurement software, it is also important to consider the financial implications of implementation. This includes understanding the cost of the software, the cost of implementation, and the cost of ongoing maintenance. Additionally, it is important to consider the potential return on investment that the software can provide. By taking all of these factors into account, you can ensure that your procurement software implementation is successful.
It is important to collect and analyze data from reports and user stories to get a comprehensive understanding of the success of your procurement software implementation. This will provide valuable insights into areas where the implementation can be improved, and help to optimize the solution for maximum impact.
With a near-instant time to value at a fraction of the cost of its competitors, FactWise empowers teams to derive significant ROI within the same financial quarter or year, depending on their usage. Our intuitive interface and customizable workflows help drive adoption by making collaboration easier and freeing teams up from repetitive, low-value-add tasks like manual data entry, emails, phone calls, tedious Excel-based analyses. We are committed to generating win-win solutions for buyers and suppliers globally.
