Creating a Culture of Spend Stewardship with WeProcurement™: A Case Study
tisdag, 22 nov 2016
The first installments in our blog series on the WeProcurement™ approach explained what it means to build relevance, intelligence, and awareness into an e-procurement system to achieve maximum user adoption and create a culture of spend stewardship. In this post, let’s take a look at one way to build awareness through WeProcurement with the YMCA of the Twin Cities’ (YMCA) story of spend transformation.
Who is the YMCA of the Twin Cities?
The YMCA’s mission is to nurture the potential of kids, promote health and wellness, and encourage social responsibility through programs at multiple locations spanning the entire state of Minnesota. In order to best deliver on this mission, the YMCA is committed to looking for areas to save costs and produce funds that can be used to support their programs.
What were their goals with e-procurement?
The YMCA had exactly 0% control over spending across their many branches, with each employee wielding a Purchasing Card (P-Card) to purchase goods and services. The YMCA needed a way to demonstrate to employees how saving money could better support their mission and provide them with a new procurement solution that would be even more convenient than a P-Card, which offered total freedom over spending.
They needed a system that supports users in their individual roles with:
- Easy-to-use functionality – similar to an online shopping experience
- Automatic matching – no collecting / submitting of P-Card receipts
- A variety of supply choices
- The ability to compare prices to get the most value
- Opportunities to collaborate with others on cost-saving initiatives.
How did the YMCA deliver awareness in their WeProcurement approach?
The YMCA adopted a WeProcurement approach to promote stewardship over organizational funds by giving employees a system that is easy-to-use and by telling employees how they are directly contributing to savings goals. They discovered a pivotal point in user adoption when they showed employees their direct impact on the success of the overall team. Employees began taking pride in seeing how making better choices in spending leads to substantial progress in freeing up more money that can then be used to support the YMCA.
“Our employees needed more participation in the purchase-to-pay process, and giving them the ability to recommend items and see the savings they were producing created community engagement and even more support for the mission of the YMCA,” said Heidi Murphy, Director of Procurement at YMCA of the Twin Cities.
What are the procurement case study results?
After 18 months of WeProcurement, the YMCA made significant progress on the following strategic goals:
- Controlled spending of 50% (up from 0%), with a goal of 90% by 2017
- User adoption increase of 30%
- 25% savings on spend from the previous year
- Continued access to actionable data
- Procurement department focused on strategic initiatives, not fielding complaints
- Supplier management transformed from tactical to strategic
To learn more about Creating a Culture of Spend Stewardship by delivering Awareness of employees’ personal impact from our previous blog post, download our e-procurement e-book "Putting the We in e-Procurement" and view the on-demand webinar WeProcurement: Change Spend Behavior.