The HBR Procurement Roundtable survey found that many law firms are interested in investing in procurement technology. The findings reveal that 32% plan to invest in invoice technology, 40% in contract management technology, 47% in supplier relationship management and 53% in analytics.
Procurement technology can help law firms mitigate risk, serve clients more effectively and operate more efficiently.
There are three steps for building a business case for procurement technology.
- Aligning procurement goals with the priorities of the law firm,
- Evaluation of how investments in procurement technology support the overall priorities of the firm and
- Regular reporting of cost saving-related metrics to stakeholders.
These metrics include the percentage of expenses with diverse suppliers, the percentage of expenses with critical or high risk-rated suppliers and annual expenses covered by contracts.
The conclusion of the study is that the procurement function can help law firms achieve their key goals and that procurement leaders must be able to demonstrate the value of the procurement function and position it to serve more as a strategic partner of the firm in the long term.