Smart IT shopping is mostly about implementing the right procurement strategy, but software itself can provide the tools to
analyze spending, enforce purchasing policies, and eliminate proprietary roadblocks that oftentimes lock you into a single
vendor's product line.
Big e-procurement systems from familiar vendors such as Ariba, Oracle, and SAP all offer that sort of functionality. But hosted
services such as those delivered by PerfectCommerce and Ketera provide interesting alternatives, because they can be deployed
quickly and still enable you to create departmentwide purchasing workflows. Either way, analysis tools integrate with your
existing ERP or other systems to provide comprehensive spending information that helps you identify savings opportunities.
Kennametal, a global manufacturing enterprise, uses an in-house spending analysis and reporting solution that "looks like
an Excel spreadsheet on steroids," says Jim Cebula, director of global purchasing at Kennametal. "We can see what percent
of our spending for, say, PCs is with our top two suppliers. If it's not 85 or 90 percent, we can use the information to consolidate
purchasing and negotiate global contracts." Kennametal then uses Ketera's e-procurement hosting services to provide employees
with an easy, "Amazon.com-like" interface for ordering PCs, peripherals, and other typical IT operating expense items from
those suppliers.
The combination of spending analysis and Ketera's e-procurement interface saves money two ways. First, it reins in maverick
spending. "Anytime someone chooses to purchase software or hardware off-contract, we see a 10 or 15 percent premium over negotiated
contracts." And it helps Kennametal negotiate better deals. "The knowledge that we control sourcing or purchasing at all our
global locations puts us in a very good negotiating position with our suppliers."
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