How to Maximize Source-to-Contract ROI

To get the most from your source-to-contract (S2C) platform, you need an organized change management approach to ensure high user-adoption, fast time-to-market and excellent ROI.

Many software solutions on the market for sourcing and procurement teams make far-fetched claims, and it’s easy to get mesmerized by all the bells and whistles especially if your organization is looking to move from manual, legacy software to a cloud-based solution. Technology alone is not a silver bullet, and the key to success is having a true partnership with your solution provider. The single most important strength of a S2C provider should be their ability to maximize tangible business results that maximize ROI.

The Typical approach to S2C Success: Lopsided Partnerships

Defining S2C needs, selecting the right provider, implementing the tool, and training of staff is a time-consuming process. But planning for what happens next – i.e. change management and driving adoption is often overlooked. Providers, on their part, spend a lot of time on marketing and winning new customers but tend to reactively, rather than proactively, support customers in their efforts to succeed following implementation. Thereby, providing little in the way of structured support and guidance to ensure success of the S2C program, the result is a lopsided partnership.

A Better Way: True Provider Partnerships

Pre-implementation work is important. But the real work should begin post-implementation to ensure your team has the right resources, drive, knowledge and a plan for how to fully utilize the technology to meet their objectives and get up to full speed quickly.

A critical component in driving long-term success to maximize ROI from your S2C solution is a detailed plan and roadmap for beyond implementation. Planning and preparation of the change management process alongside driving adoption among users and stakeholders is key to quickly generating ROI. This is where the provider should be proactively and emphatically leading the way to success. After all, they have been involved in hundreds, if not thousands, of similar projects. Your team members are the procurement experts, and your solution provider should be the expert in driving S2C success.

The road to S2C program success is filled with challenges and barriers. One of the largest barriers to adoption can be resistance among team members who are opposed to change, comfortable with manual processes and legacy systems, or executive stakeholders who take an “if it ain’t broke, don’t fix it” mentality.

It is solely the provider’s responsibility, in partnership with procurement leaders, to help the teams and stakeholders understand the benefits of technology and digitization, and to weed out potential fears that automation and technology will replace their jobs. This will help to break down barriers and melt away resistance.

Breaking Barriers to Adoption with Project-Based Learning

Your team needs to feel confident and empowered by the new S2C solution, regardless of their level of tech-savviness. Users should be split into groups based upon technology competence levels and trained accordingly. This phased approach to S2C adoption with a Project-Based Learning Program will help your entire team get there quickly and comfortably.

In this approach, users are trained on upcoming real-life sourcing events, supplier management projects and contract creation/execution projects. This ‘learning-as-you-go’ approach means doing the work, rather than receiving days’ worth of theoretic and fictional training, also making it easier to recall what was learnt when it is actually needed.

Having a highly organized, pro-active approach to define KPIs and targets, create project plans to drive adoption across stakeholders, and a roadmap to achieve the KPIs/targets will ensure that the ultimate ROI is realized.