Best Practices: Successfully Planning For And Managing Automated Spend Analysis Projects

Forrester estimates that only 13% of the companies that have implemented eSourcing solutions have also rolled out automated spend analysis. At a time when vendor consolidation and cost cutting is paramount, why isn't there higher adoption of a tool that can help do exactly that? Mainly it's because of the high level of effort, the complexity, and an ROI of at least six to eight months — not ideal for companies seeking immediate gratification. Despite the challenges, forward-looking companies are adopting these solutions to unearth hidden gems where the obvious waste has already been eliminated. To understand how some of the most successful strategic sourcing programs gain credibility within their organizations with automated spend analysis, we spoke with more than 20 practitioners, consultants, software vendors, and end users to provide a cross-industry perspective on best practices, pitfalls to avoid, and next practices for success. The best practices we identified with the highest return include the importance of managing the initiative like a real project — not just an ad hoc reporting exercise; planning for multiple iterations of refinement; implementing an airtight change control program; and ensuring adoption with continuous improvement.