In times like these, it is often an “easy” management decision to defer technology projects. Technology improvement projects are looked at as untimely or unnecessary, and in some cases the projects are cut for being non-core to the operations or survival of the business. Software is “put on the shelf” to be utilized at some future date. Realistically, by the time the financially feasible time comes around, it’s not as simple as just taking the software off the shelf and implementing it. Years can go by, and in that time, technology, software, skills and knowledge change.

In this case study, Enporion worked for a global Fortune 500 manufacturer on “squeezing more out of technology” to increase the return on investment (ROI) for their order placement and invoice processing technology. That way, the company could exceed investment return expectations. Enporion helped the customer achieve a better return by providing analysis, increasing usage (increasing transactions), and accommodating more suppliers – altogether leading to a larger transaction volume and increased dollar value of supply moving through highly efficient electronic procurement processes.

When using software-as-a-service maximizing purchasing usage is a major consideration in the return on investment. The more business or transactions you enable electronically, the more money you’ll save. Having buyers that purchase outside of the standard business process and technology that supports it causes several costs. One cost is the difference (higher) total cost of purchase for any good that is essentially “maverick spend.” The other major cost is the unused technology. Underutilized technology such as software degrades the ROI over time. At the same time, handling the purchase through some other non-standard process is likely to cost more than if the purchase went through the proper channel.

All current suppliers were brought onboard. Next, new suppliers were considered to be added to the marketplace based on financial or transaction volume considerations. Enporion has provided supplier enablement services for many years, and has an experienced team with a dependable, efficient process for onboarding suppliers.

Challenging milestones were set for the project, managed by Enporion and key customer contacts. Key milestones included 1) the value of transactions processed by a set date, and 2) the number of suppliers onboard and transacting by a set date. In order to hit the major milestones, Enporion took on all aspects of contacting the suppliers and working to enable them electronically. Additionally, Enporion is training suppliers and customer staff to use Enporion’s e-procurement system (Order Manager and Catalog). An integral part of this entire project was to ensure that all of the suppliers use the Enporion e-procurement system so that the key success levels were met that would provide the necessary return on investment. To sustain the momentum of the supplier enablement effort, comprehensive reporting and monitoring processes were also developed and are begin deployed. Key attributes of these processes include ensuring compliance, reporting, and tracking results.

Milestones are being met satisfactorily: reaching the expected onboarding volume and other measures. In the coming years, such efforts like explained in this case study will be common. In this economy, many businesses are looking for ways to “squeeze more out of technology” and are asking their technology and service providers to help increase the return on technology investments for long-term business operations success.