Originally Published in Provade Perspectives | February 7, 2013 | By Domenic Mancini
I recently returned from the Consero Procurement & Strategic Sourcing Forum in San Diego, CA last week. This event matched up strategic suppliers and various procurement professionals with similar interests, and our discussions – focused on managing contract life cycles, minimizing risk, legal and ethical obligations and overall relationship management – offered many interesting insights.
During my meetings, it became overwhelmingly clear how few businesses have full visibility into their contingent labor spend, and even fewer know how to introduce a good cost savings methodology. Many businesses are still relying on data dumps into Excel to run their numbers, while some less mature organizations are just beginning to build out procurement departments and develop formal, corporate spend policies. True transformational change is a slow process – it takes time to identify needs and figure out the best way to move forward.
Provade VMS offers immediate insight into spend, but the data requires a deep dive to truly transform a business’ contingent workforce processes. Quarterly business reviews and trend reporting can provide recommendations for process improvement, but you must have the tools in place to get to the level of analysis that can drive real change. Just installing the solution will not get you there – data analytics are what truly drive ROI.
As we discussed the conference attendees’ experiences with other technology solutions – and talked through the overall purpose and value of such a system – I saw continued attempts to draw comparisons between other procurement process management systems and Provade. Most systems address only a portion of what our solution offers, and their focus tends to be on talent management and coordination. Only Provade VMS offers a complete procure-to-pay system. Businesses need a full lifecycle system in order to properly extract the deeper level of analytics that will allow them to more clearly understand their spending practices.
With every conversation, we get one step closer to businesses fully grasping the value a VMS can bring to their organization. I look forward to next year’s Forum, where we can continue to advocate for data analysis and demonstrate the transformative abilities of Provade VMS.