Coupa Blog

Coupa is a company of talkers, passionate about sharing tips, tricks and advice for improving finance and procurement and saving companies of all sizes time and money. But we’re not the only people with opinions and ideas. We’d love to hear from you so join the conversation!

Cost Cutting in the Cloud Best Practices #2: Crowd source savings

It’s naive to think a few individuals in the procurement department can single-handedly negotiate contracts that will always ensure the business gets the best price. With a few exceptions, business and information moves too fast for that to be realistic. The better strategy is to rely on the wisdom of the crowd to source the best deals and drive savings for the business.

 

As information proliferates over the web, and more and more markets become increasingly transparent, pricing has become more scientific. Think airline seats. Don’t like the price of your aisle seat? Just wait ten minutes and check again, the price may well be different this time around.

 

Employees have always looked upon the purchasing department and preferred supplier agreements with suspicion. They know, especially now that they can often find better contract prices with a basic amount of research online. Let’s face it–the information is out there. And there’s no way to stop it. Spend management initiatives build around a ‘need to know’ mindset that controls the flow of information are doomed to fail. There’s just no way to hold back that wave. So don’t.

 

Ride the Wave Instead! Leverage tools that allow empoyees to “discover and share” online money-saving purchasing opportunities as part of their requisition process. Download the free e-book How to Cut Costs in the Cloud, and get the details on how to crowd source savings, and for other cost-cutting best practices.