Smarter Together: Using G-Quotes to Drive Services Spend to Preferred Suppliers
Today’s blog post is by a guest author, Frank Treanor, founder and CEO of ProProcure. Frank leads a business with a sharp focus on extending automation to the purchasing of services and other complex categories. ProProcure, a CoupaLink technology partner, is a SaaS leader helping enterprises extend the capabilities of their eProcurement investments by increasing supplier engagement and collaboration.
G-Quotes and the Consumerisation of Procurement
In a recent article for Spend Matters, I delved into the topic of procurement consumerisation and why we, as an industry, are still far from this becoming a reality.
The consumerisation of procurement has been an industry-wide goal for many years, but CPOs and directors are still asking the same question: “why can’t business purchasing be as simple as consumer purchasing?” The answer is simple. Processes are still convoluted and purchase automation doesn’t cover enough business spend. True consumerisation can only happen when the procurement function takes themselves out of the buying process and allows business users to buy the goods and services they need to meet their business objectives in a streamlined way, from their preferred suppliers. You can read more about the challenges here.
An area of spend still relatively untouched by automation is Services. This category alone accounts for over 53% of corporate expenditure and is notorious for having a convoluted and complex purchasing process. As mentioned in the Spend Matters article, services are often dynamic, difficult to catalogue, and ideally require a statement of work (SOW) from a supplier before an order can be placed. It’s no wonder that procurement is still heavily involved, using web forms as a form of control. Until this beast of a category can be fully automated, true consumerisation of procurement is not possible.
Bridging the Automation Process
So what can we do as solution providers to help you break through the wall? Coupa is doing a fantastic job at automating the process from requisition-to-order-to-invoice. Bridge solutions can provide additional value—in particular, bridge solutions certified by Coupa. A CoupaLink certified solution can provide you with the confidence that it has been thoroughly tested, has a high-value proposition, and will integrate seamlessly with Coupa.
When we’re talking about the challenges surrounding manual data entry, spend visibility and supplier collaboration in the quote-to-requisition process of purchasing services (and other complex areas of spend), there is a perfect bridge solution on the market.
G-Quotes has been designed by ProProcure and certified by Coupa to 'build the bridge' between buying organizations and their services suppliers, making it easier for users to purchase from preferred suppliers and use the correct contract. G-Quotes for Coupa enables enterprises to fully automate the purchasing of services and other complex categories where they already have Coupa in place but may need support in automating the quote-to-requisition piece.
How Does G-Quotes Fit into the Coupa Landscape?
G-Quotes enables Business Users to brief preferred suppliers on their requirements and provides suppliers with an intuitive quote-building app where they create and send a detailed statement of work (SOW) in response. At the click of a button, Users can then automatically convert the SOW into an accurate purchase requisition with line-item detail, commodity codes, and the correct contract—removing the need for any manual data entry.
By removing the laborious manual work involved in raising a requisition, you can empower your Business Users to collaborate effectively with preferred suppliers and encourage your Procurement Team to reduce the time they spend on low-value purchase-administration and focus on vital strategic initiatives such as bolstering the strength of the supply chain.
And the savings? On average, each supplier sends between 20 to 30 quotes per month using G-Quotes, with an average quote-conversion rate of 68.3%. If we assume that 100 suppliers have been onboarded and connected with Coupa, 1,366–2,049 Purchase Requisitions could be automated with G-Quotes every month.
And with a median cost per PO per FTE of $162 (APQC Performance Benchmark Report), connecting G-Quotes with your Coupa Solution could be saving your business $221,292–$331,938 per month (£2,000,000–£4,000,000 per year).
Rapidly increase automation and make the consumerisation of procurement a reality for services and other complex expenditure.
To find out more about G-Quotes for Coupa or to get in touch with the team at ProProcure, click here.