PurchTips - Edition # 164

 

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Procurement Technology Success Secrets

By Charles Dominick, SPSM, SPSM2, SPSM3

What Are Procurement Technology Best Practices?

Procurement technology helps accelerate business improvements. Still, many procurement professionals struggle to get a procurement technology initiative started due to senior management reluctance to invest in it.

The key to convincing senior management to invest in procurement technology is showing them a return on investment (ROI). ROI means that the money saved by using the technology will be greater than the money spent on paying for the technology and the internal and external resources to implement it.

Procurement Technology

Senior management may also ask "'What happens if we [implement procurement technology] versus what happens if we don't?'" according to Linda Peyton, Project Manager of eSourcing and Contract Management Systems for Wolters Kluwer. "You have to calculate the value and communicate the benefits."

Being creative when communicating benefits can help. For example, if you estimate your savings attributable to eSourcing to be $1.5 million and your organization has a 10% profit margin, "then you calculate how many additional sales your sales department would have to generate to obtain that $1.5 million [in profit increase] and, I guarantee you, senior management will pay attention," Peyton claims. "If you can equate return on investment and cost savings to stock prices, that's even better."

Because eSourcing can produce a faster, more apparent ROI, it is often the first procurement technology tool implemented. However, that may not always be the most strategic approach.

"I believe that any procurement organization must have a spend analytics tool," says Peyton, who shares that a good spend analytics tool "will enlighten you with what you spend, where you spend it, and with whom you spend it." This information serves as the foundation on which a long-term procurement strategy - including the identification of optimal categories for eSourcing - can be built.

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Spotlight On Professional Development Opportunities

SPSM Certification

Are you tired of not getting enough opportunities, respect, and money out of your purchasing career? Well, guess what? Nothing will change unless you take action towards becoming a world-class purchasing professional.

You see, today's employers refuse to reward employees for yesterday's skills.They demand that purchasing professionals like you use the most modern skills and achieve unprecedented results. They want you to save more money, achieve better operational performance, and reduce risk.

Is lacking a purchasing certification keeping you from getting the results, opportunities, respect, and money that you want out of your career? Today's employers refuse to reward employees for yesterday's skills. They want you to save more money, achieve better operational performance, and reduce risk. They demand that purchasing professionals like you achieve unprecedented results and without the most modern skills that can be a challenging feat!

So how can you acquire the most modern skills, achieve meaningful results, and convincingly prove your capabilities to today's employers? There is an impressive purchasing certification program that will teach you what you need to accomplish all of this and more. It is the SPSM® Certification, earned by completing the Senior Professional in Supply Management® Program. And you could earn it in less than a year - maybe even much less than a year!

Earning your SPSM® Certification by completing the Senior Professional in Supply Management® Program is the action to take if you want to bring the most modern purchasing practices into your organization and achieve your career potential. Learn how to earn your SPSM® Certification (and perhaps get an iPad) (with the option of getting a Study Guide on an iPad) at:

Distinguishing yourself as an achiever in purchasing is key to sustaining a rewarding career, even in these difficult economic times. Earning your SPSM® Certification by completing the Senior Professional in Supply Management® Program is to take if you want to bring the most modern purchasing practices into your organization and achieve your career potential. Learn how to earn your SPSM® Certification (and perhaps get an iPad) at:

Earning your SPSM® Certification by completing the Senior Professional in Supply Management® Program is the action to take if you want to bring the most modern purchasing practices  into your organization and achieve your career potential. And if you sign up for the Senior Professional in Supply Management® Program on or before May 31, 2008, SPSMSM Certification Program on or before 4/30/2007, you also get these and other bonuses valued at over $700:

  • FREE $30 gift certificate to Amazon.com!
  • FREE CD-ROM with printer-friendly versions of the class materials!
  • FREE Purchasing Performance Measurement spreadsheet template!
  • FREE audio CD about purchasing job security!

To learn how to earn your SPSM® Certification and get these valuable bonuses, visit:

Earning your Senior Professional in Supply Management® (SPSM) Certification is the action to takeif you want to bring the most modern purchasing practices into your organization and achieve your career potential. Learn how to earn your SPSMSM Certification at:

Learn how to earn your SPSM® Certification at:

www.NextLevelPurchasing.com/spsm.html



The Latest Purchasing News!

  • Purchasing Managers/Directors: The fourth quarter is a critical time for planning how to improve your team's skills and performance in 2009. We can help you build a roadmap for improvement. Learn if you qualify for our FREE purchasing skills benchmarking service at: www.NextLevelPurchasing.com/benchmark
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Want to learn more about today's topic? Then check out my podcast interview with Bill Dorn! Podcasts are audio files that you can listen to on your PC, download to your iPod/MP3 player, or burn to CD. Our Purchasing & Supply Management Podcast SeriesSM is a new way for us to help you succeed!

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Free Procurement Training & Certification Starter Kit

This Starter Kit gives procurement professionals like you a clear idea on what it will take to become certified. You'll get an excellent feel for what you will need to learn and how long it will take.

Click here to learn more

Included in your free Starter Kit:

  • Access to two lessons from courses that are part of the Senior Professional in Supply Management® Program
  • A Certification & Training Planning Template
  • Case studies
  • A free Basic Membership in the NLPA

Together, these materials will help you decide how well the SPSM® Certification can help you achieve your career goals.

So, what are you waiting for? Begin your pursuit of a more rewarding procurement career – get your Procurement Training & Certification Starter Kit now by signing up for a free NLPA Basic Membership!

If you are already a member of the NLPA, click here to login and visit the "Starter Kit" tab to access these resources.