Stakeholder behaviour key to controlling spend

17 March 2011

17 March 2011 | Lindsay Clark

Influencing behaviour among stakeholders remains one of the greatest challenges in improving managed spend.

Research by software supplier Zycus found that change among stakeholders is the number one obstacle for UK companies trying to improve management of spending.

While 61 per cent of the 100 buyers quizzed for the study said their procurement organisations have explicit mandates to manage corporate spending, 51 per cent said weak interest or support from stakeholders was the biggest barrier to them becoming “best in class”, making it the highest ranking challenge.

In second place was internal resistance to change, cited by 47 per cent of respondents. Weak executive support was one of the least likely obstacles.

While technology investment was necessary to become “best in class”, it was not the only factor affecting success, the report said. To automate processes procurement organisations also need to increase technology adoption through training, metrics and ease of use.

Although not directly creating savings, supplier information management systems were able to influence decisions that did, making these technologies a popular option for the future. “Expect heavy emphasis and innovation around supplier performance management out of the UK in coming years as companies invest, adopt and use this technology,” the report said.

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