Manufacturers utilizing manual processes to source the direct materials that comprise their products have an extraordinary opportunity to leverage automation and drive great value across the enterprise. And yet, while the value proposition of an eSourcing solution is straightforward, articulating and presenting a business case for a solution can be complex, time-consuming, and difficult. To help procurement and sourcing executives and their teams accelerate this process, Ardent Partners has developed a robust “Business Case Framework” that includes eSourcing specific content, independent research, and easy-to-follow directions.

The goal of this specific article series is to help Sourcing Leaders present a compelling justification for an investment in an eSourcing solution by explaining (at a high level) why the current problems demand a change and describing (at a high level) the eSourcing solution and its likely impact. This Business Case can also be used to communicate the project to other constituents and establish a method for measuring success. Sourcing teams that fail to make a successful business case for an investment in an eSourcing solution will continue to struggle for awareness and budget in the future. We believe that this series can help jump-start new (or stalled) eSourcing initiatives, provide the final push for those approaching the finish line, and validate the work of all the groups that are somewhere in between.

What is a Business Case and why is it important?

A Business Case is the business document that is used to present a logical argument for initiating and investing in a specific project or technology. The goal of any business case is to provide the critical information that key decision-makers need to make an informed decision as to whether or not a project is a worthwhile use of time, money and resources.

How can I use this Document?

This document is a framework that can be used to build a business case for an eSourcing solution. Each section of this document includes the following: Instructions to the reader (in green italicized text) and Section content (in regular black font) that can be used or modified as needed (including a few “blanks” that should be completed) to describe the team or department’s specific situation and needs. The Appendix includes a discussion as to the practical use of this research document, suggestions on how to enhance a sourcing team’s specific business case, and ensure that the business case prepared contains the right content and is presented with the proper tone and context.

Who should be involved in the process? The ultimate success of the eSourcing project will depend on the level of support provided by many other groups. Business cases that include input and buy-in from the impacted stakeholders are more likely to gain approval from the key decision-makers and are more likely to gain broad adoption and acceptance from the larger enterprise.

Tagged in: automation, Business Case, Chief Procurement Officer, CPO, Sourcing, Technology