Did you miss Ardent Partners’ recent webinar, Scale New Heights: Improve Performance by Optimizing Your Procurement Technology, that shed light on reaching the next level of procurement performance by building a plan to get the most out of your team and technology? Adding new technology, such as IM&PPO, can help drive more value from existing procurement solutions or get procurement leaders started with the right foundation.
Moderated by Ardent Partners’ Andrew Bartolini, the session featured industry experts, Magnus Bergfors, VP of Research at Ardent Partners, and Nick Heinzmann, Head of Research at Zip, who explored how ProcureTech is significantly improving the performance of procurement organizations.
In this two-part series, we provide some of the webcast highlights and this link to the full event.
Let’s look at Part Two and the key takeaways around how organizations can optimize procurement by leveraging Intake Management and Procurement Process Orchestration (IM&PPO) solutions through three main approaches: a pure IM&PPO model, a fully integrated Intake-to-Pay (I2P) strategy, or a flexible hybrid model that balances both. Real-world cases from companies like Discover Financial, Northwestern Mutual, and Dollar Tree highlight how these strategies improve efficiency, reduce costs, and enhance procurement adoption.
Optimizing Value with IM&PPO Solutions: Strategies and Implementation
As organizations look to optimize procurement processes, the integration of Intake Management and Procurement Process Orchestration (IM&PPO) solutions has emerged as a powerful enabler. With the growing adoption of Intake-to-Pay (I2P) capabilities and source-to-pay functionalities, businesses now have a range of strategic approaches available to maximize efficiency and value. In this discussion, we explore three primary approaches — pure IM&PPO, full I2P, and a hybrid model — before delving into real-world use cases and best practices for implementation.
Approaches to Leveraging IM&PPO Solutions
Pure IM&PPO Approach. The first strategy relies solely on IM&PPO solutions as a foundational platform while leveraging other applications to execute triggered processes. This model benefits organizations that have already made significant investments in their existing digital procurement tools and wish to enhance their adoption without replacing legacy systems. It aligns with the best-of-breed strategy by ensuring seamless data coordination across different platforms. Organizations on the cutting edge of procurement innovation can also benefit from the agility this approach offers, allowing for easy integration of emerging technologies and startup solutions.
Full I2P Approach. At the other end of the spectrum, organizations can implement a fully integrated I2P strategy where IM&PPO capabilities drive the entire procurement lifecycle. This model is particularly suitable for smaller or less mature organizations that may not have significant legacy investments and require an end-to-end solution without the complexity of integrating multiple systems. However, due diligence is crucial, as many of the I2P capabilities within IM&PPO providers are relatively new and may require careful evaluation before adoption.
Hybrid Approach. A balanced approach combines elements of both models, using IM&PPO as a foundational platform while selectively integrating specialized procurement applications. This strategy offers maximum flexibility, enabling organizations to adapt over time. They can start with a pure IM&PPO framework, gradually incorporate specialized solutions, and eventually evolve towards a more comprehensive I2P model as capabilities mature. This hybrid model is likely to become the predominant approach, given its ability to cater to evolving business needs while leveraging both established and innovative procurement technologies.
Real-World Use Cases
Discover Financial: Discover Financial had a well-established procurement technology stack, including supplier performance management, contract lifecycle management (CLM), and procurement performance management solutions. However, they faced challenges with process adoption and intake. Initially, they built an in-house solution to address these issues, but maintaining it proved difficult. By transitioning to an IM&PPO-powered platform like Zip, Discover Financial increased procurement throughput by 70%, improved contract renewal automation, and saved over $120 million by reducing duplicate spending and streamlining renewals.
Northwestern Mutual: Northwestern Mutual implemented an IM&PPO solution on top of its legacy source-to-pay suite. Initially, this enhanced their spend under management by 20%. Over time, they recognized additional benefits in consolidating procurement operations within the IM&PPO platform, leading to improved decision-making, better risk management, and 18% savings on procurement processes. Despite maintaining certain cross-functional applications, the organization optimized its entire procurement workflow, showcasing the advantages of a well-integrated solution.
Dollar Tree: Dollar Tree adopted a hybrid approach by retaining SAP Ariba as its core procurement system while integrating specialized solutions for procurement intake, spend analysis, and performance management. This composable strategy allowed them to optimize adoption, streamline procurement workflows, and create a flexible procurement technology stack that could evolve with their needs over time.
Implementation Strategies
Organizations looking to implement IM&PPO solutions can adopt one of two major strategies:
Use-Case-Based Implementation: This incremental approach starts with a specific procurement process — such as contract renewals or a challenging spend category like marketing. By focusing on a targeted use case, businesses can achieve quick wins, minimize disruptions, and gradually expand their IM&PPO capabilities across other procurement functions.
Transformational Implementation: This approach involves a comprehensive redesign of the entire procurement process, integrating IM&PPO solutions as the foundation for end-to-end automation. While requiring more change management and upfront effort, it allows for a holistic transformation that maximizes efficiency, visibility, and long-term value.
Regardless of the chosen approach, successful implementation depends on thorough process assessment, strategic advisory, and a willingness to challenge traditional procurement workflows. Organizations must recognize that previous limitations of legacy systems no longer apply and embrace the flexibility and integration capabilities of modern IM&PPO solutions.
Conclusion
The evolution of procurement technology presents organizations with multiple pathways to optimize their sourcing and payment processes. Whether through a pure IM&PPO model, a full I2P transformation, or a hybrid approach, businesses can leverage these solutions to improve process adoption, enhance efficiency, and drive significant cost savings. As procurement continues to shift from rigid digital frameworks to more flexible, integrated platforms, companies that adopt the right approach for their needs will be well-positioned for future success.
