4. Our Panelists
Mark Colwell
Vice President
Paystream Advisors
Kevin Turner
Global eCommerce Director
Dell
Hyrum Kirton
Vice President – Procurement
Avalon Healthcare
6. PayStream Advisors
is a provider of independent research and automation
assessments for financial automation technology to business
leaders in finance and procurement.
Advisory ServicesPayStream Research
9. Which Of The Following Business Models Have
Been Adopted By eProcurement Vendors ?
1. Only buyer pays
2. Only supplier pays
3. Both buyer and supplier pay
4. No one pays
5. 1, 2 and 3
10. eProcurement Business Models
Buyer Funded
(example Coupa)
Supplier Funded
(example GHX)
Network
(example Ariba)
Buyer Pays Buyer Pays Cost Plus Buyer Pays
No Supplier Fees Supplier Fees Supplier Fees (typically)
11. No Supplier Transaction Fees =
Increased Adoption
When implementing a successful eProcurement or
E-invoicing initiative it is recommenced that suppliers
have No Supplier Transaction Fees
A no charge supplier policy will help to increase
your Supplier Adoption Rate
Success initiative (regardless of the technology
partner) requires supplier adoption
12. Avalon’s eProcurement Journey
Go ahead approval took 2 years from start to finish
led and pushed by procurement
Built committee of department heads to create new
processes and vendors for company fit
Vetted 6 E-procurement vendors over process
Estimating investment:
• Cost at or below current vendor pay model
• Value adds to support platform robust while keeping
supplier pay model
13. Doing The Math
Hard vs. soft costs
Hidden costs, gotchas
Opportunity costs
PayStream tool
14. Hard vs. Soft Costs
Focus on hard dollar
• Success of companies is measured in hard dollars
• Upper management wants to see hard dollar saving
Don’t ignore soft costs
• Focus on the soft dollar costs that can be turned into
hard dollar saving
– Example: Reallocation of personnel. Retaining those people, reusing
them, freeing up their capacity, can allow a company to grow “outward”
rather than inward
15. What is Perceived as the # 1 Barrier to
eProcurement?
1. IT Resources
2. No budget
3. Lack of executive support
4. Hard to justify
5. All of the above
17. Hidden Costs, Gotchas
IT required changes… reliance on ERP vendor and
outside firms
Process Exceptions… ePO without catalog;
eInvoice without ePO
Many procurement solutions… adaptability to various
technologies and solutions
Vendor Fees… Pay to Play
Integration Knowledge & Support
18. The PayStream TCO Tool
Vendor and technology agnostic
Simple, straightforward yet comprehensive
Helps asking right questions
19. Steps to Calculate Your TCO
.
Evaluate the features and
functionality of competitive
products – Cloud
versus On-Premise/Network
business application solutions.
Initial Costs
1. Evaluation and Selection
21. Prior to making the
decision to go with a
Cloud or On-
Premise/Network
solution, a buyer must
first identify all the
necessary cost
components associated
with each option.
22. Keys to Control Costs
Agreed-upon goals, objectives… and schedule
An executive commitment
Dedicated appropriate contacts for project duration
A commitment to utilization to achieve full
return on investment