Senior management in organizations of all sizes and types are looking at eSourcing as the savior of purchasing. Yet the ultimate success or failure of the eSourcing initiatives depends, on the ability of the eSourcing team to correctly assess the organizational context – culture, structure, people, processes, and systems in order to decide which tools to adopt, how to incorporate them into robust sourcing processes, when and where to implement, and how to get buy-in from key stakeholders to ensure high adoption and utilization rates.

Strategy and process first, technology last.

In order for an eSourcing initiative to succeed, the sourcing function needs to do their homework: develop a comprehensive e-sourcing strategy, develop robust processes, and acquire appropriate technology that will be widely adopted and used.

A comprehensive eSourcing strategy addresses four organizational elements:

Structure
Culture
Process
People

A solid sourcing strategy is the foundation of an efficient eSourcing strategy.

Core team deployment ensures usage

eSourcing technology offers many opportunities to enhance and sustain strategic sourcing effectiveness. IBX eSourcing strategy is core-team driven. In most companies there are several types of leaders. Formal leaders, such as senior executives, push change through the organization. Informal leaders, pull change through the organization.

Unfortunately, companies often adopt an “if we build it, they will come” mentality. However, technology without users is money poorly spent. IBX core-team deployment strategy ensures corporate usage, where early adopter champion the cause and drive adoption and utilization.

eSourcing strategy buy-in: the critical success factor is the ability to sell process change. There are a number of approaches for getting buy-in including:

Identify and align with early adopters and passionate owners.
Designate a champion of the cause.
Use metrics to “sell” tools to stakeholders.
Identify early adopters and train them as key users. Get early buy-in by communicating wins that matter to the users.
Develop a “just-in-time” training plan for infrequently used tools to accommodate the “forgetting” factor

IBX eSourcing strategy has four fundaments. First, organizational strategy must be aligned vertically (from senior management through business units down to individuals) and horizontally (between and among functional areas). Second, robust sourcing processes need to be in place and in play. Third, data integrity is critical – IBX eSourcing has centralized data storage ensuring integrity. Finally, the eSourcing strategy must be based on the general sourcing strategy. The desired result is joint ownership of strategy, processes, and tools.