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.
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.
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.