What To Look for When Evaluating Source-To-Contract Solutions For Quicker Time To Value
Source-to-contract (S2C) solutions are a crucial part of a procurement modernization strategy that empowers public institutions to maximize their community impact, streamline operations, leverage strategic sourcing initiatives, and get the most out of every tax dollar.
With an S2C platform, you can manage the entire sourcing process in one place, from drafting a request for proposal (RFP) and finding the right vendors to handling contract lifecycle management (CLM), spend analysis, and supplier relationships.
That said, implementing new software often comes with a learning curve and a period of change management. For many public organizations, fear of a lengthy implementation process or discrepancies between the initial promise and the actual solution delivered can get in the way of adopting tools that empower them to increase their impact while driving down costs, so they accept the status quo.
According to a 2022 McKinsey study on IT projects, more than 80 percent of projects in the public sector overran their schedules, and cost overruns for the public sector were three times higher on average than those in the private sector.
It’s key to know that implementation doesn’t have to be an obstacle to modernization. With the right approach, you can adopt a new solution that will deliver value quickly instead of keeping you bogged down in change management.
Here’s what we’ll cover:
Why Is Time To Value Important?
How To Evaluate Source-To-Contract Solutions for Optimal Time To Value
Final Thoughts: Choosing Source-to-Contract Software with Quick Time To Value
Why Is Time To Value Important?
Time to value measures how long it takes from purchasing a new solution to starting to receive its benefits, such as improved efficiency, more effective supplier selection, or cost savings.
Modern eprocurement solutions are excellent at streamlining workflows and reducing manual tasks. However, like any software, there’s an initial adoption period needed to get the solution up and running. The sooner you can implement the platform and tailor it to your organization’s unique workflows, the sooner you reap the benefits, which is why it’s crucial to find solutions that already have public sector processes and best practices built-in.
Considering implementation time in the decision-making process also enables you to stick to your budget and timeline. If you don’t think about time to value, the source-to-contract software may leave your procurement team stuck in a big project with additional costs.
How To Evaluate Source-To-Contract Solutions for Optimal Time To Value
When you select the right esourcing provider to begin with, implementation doesn’t have to be a major hurdle. Follow these steps while vetting potential suppliers, and you’ll be able to get your S2C solution up and delivering value in a matter of weeks rather than several months or years.
Look for Providers That Specialize in the Public Sector
Public institutions often have to adapt their sourcing processes to fit inflexible and generic solutions created for the private sector. In other words, public organizations have to change their processes to ensure the software works for them, rather than the other way around. This approach leads to longer implementation times due to having a steep learning curve or requiring extensive customization. It can also require costly partnerships with implementation firms just to make a solution.
The good news is that this doesn’t have to be the case, as there are S2C solutions that cater specifically to public institutions.
Software built around the public sector provides procurement automation tools that are ready to use out of the box and require less time to implement. The features you need should be readily available in the settings for you to configure, rather than needing an implementation specialist to create custom code to make the solution fit your processes.
Look for providers like mdf commerce with public sector solutions and a deep understanding of public supply chain processes, procurement activities, and contract management needs. One way to learn more about a provider’s work is by asking for case studies specific to public institutions.
Questions to ask potential providers:
- Have you worked with public sector institutions?
- Do you have a platform made specifically for public procurement?
- What features do you have that are tailored for public procurement?
Opt for a Phased Approach
Another way to speed up time to value is by choosing a provider with experience in project management, including using a phased implementation approach that reduces complexity.
Phased implementation plans offer incremental deliveries that allow you to start using the product faster and get value from the most relevant modules and components. You can implement the tool into other processes as you gain comfort with it.
When evaluating providers, don’t just ask about the tool’s features. Ask about the implementation process to get an idea of how many weeks it will take until you can be up and running with the solution.
Questions to ask potential providers:
- How do you structure your onboarding process?
- What are the milestones you focus on for implementation?
- How long does it take for customers to be fully up and running?
Choose Platforms That Grow With You
Finally, it’s important to think about what you can implement right away and what type of functionality you’ll need in the future. You might only need basic modules right now, but look at the next steps of maturity and ensure your provider will have the capabilities you need then.
In other words, don’t get locked into an off-the-shelf private sector solution with limited capacity that can barely meet your current needs. If this happens, you might find yourself in the position of starting over and adopting entirely new software to support your sourcing strategy in just a few years.
The right provider should be able to meet your needs now and grow with you. In particular, you want to ensure that customization won’t get in the way of flexible growth. Some platforms allow you to tailor the tool, but those customizations can make it difficult to scale as you grow.
Questions to ask potential providers:
- What features and capabilities are in your product roadmap?
- How easy is it to upgrade a customized environment?
- Are you working with organizations that are more mature than ours?
- How do customer requests and feedback impact your product roadmap?
- How flexible is the product’s configuration when it comes to changing processes as an organization grows?
Audit Your Internal Processes Before Implementation
Finding the right provider is only part of the solution when implementing new S2C software. Preparing your procurement team for the change can speed up implementation.
For example, audit your processes and outline your ideal workflows beforehand. You can also look for areas that require a lot of manual work or have a higher risk of human error and keep an eye on them during implementation to maintain high quality.
Final Thoughts: Picking Source-to-Contract Software with Quick Time To Value
Focusing on time to value during the evaluation process can help you find an eprocurement solution that adapts to your organization and delivers value quickly. To learn more about source-to-contract software designed to deliver quick value and grow with your public institution, explore mdf commerce’s solutions for government buyers today.
