Spendflo Procurement Handbook

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Spendflo Procurement Handbook

Buying Team - KRAs & KPIs

Raj Patel

Last edited 300 days ago by Jimmy Hallsworth

Role: Engagement Manager

The KRAs of Engagement Managers (EMs) are split into the following 3 categories:

Account Management

Procurement Efficiency

Strategy and Leadership

Account Management

Account Health & Customer Experience: Take ownership of and manage the procurement journey for each customer account within the POD. This includes monitoring and enhancing the overall health of customer accounts and delivering a 7-star buying customer experience.

Savings Analysis and Plan of Action: Develop and execute a Savings Analysis and Plan of Action for each onboarded account to verify the initial analysis (done during Sales), and maximize cost savings and efficiencies.

Cost Avoidance Strategies: Strategize and implement cost avoidance strategies to optimize customer expenditures.

Onboarding Checklist Adherence: Verify the data as per the Onboarding Checklist before it transitions into the POD, ensuring that the required data and spend are available. Highlight any gaps or issues during the transition of onboarding accounts to the POD.?

Procurement Efficiency

Savings Velocity: Achieve the Minimum Savings Guarantee (MSG) within 180 days of contract signing. Develop and execute an execution plan to attain Potential Savings Estimate (PSE), regulate procurement updates, and maintain Turnaround Times (TATs).

Request Intake Optimization: Collaborate with SaaS Analysts and enable them to ensure timely procurement request intake. Periodically review request health in Weekly Check-In calls to enable data-driven discussions for Customer Success Managers (CSMs).

Savings Approval: Oversee and approve savings achieved by Buyers, ensuring compliance with the procurement strategy.?

Strategy and Leadership

Procurement Strategy Leadership: Lead procurement-specific strategies for the POD, providing direction and guidance to the team.

Enablement and Feedback: Enable Buyers and SaaS Analysts to achieve their key KRAs by providing continuous feedback and coaching to support their growth.

Yearly Action Plan: Develop and execute a yearly action plan, broken down into quarterly segments. This plan should encompass aspects such as Minimum Savings Guarantee tracking, Potential Savings Attainmenrt, and Customer Return on Investment (ROI) tracking, addressing offline purchases, converting monthly contracts to annual, and cost optimization strategies.

Monthly to Annual Contract Conversion: Aim to convert 30% of monthly contracts into annual contracts each quarter.

Quota Management: Manage the procurement and savings quota by delegating negotiations to Buyers and taking the lead in negotiating for the rest.

Escalation Leadership: Spearhead all escalations and provide support to team members in negotiations, TATs & SLAs, and updates for all customer procurements. Ensure timely approval of savings closed by Buyers and escalate parallel negotiations when identified.

KPIs (Key Performance Indicators):

Savings Milestones

Achieving FTV within 2 weeks of customer initiation.

Achieving MSG within 90-180 days of POD handover.

Hitting 60% of the PSE by the end of the customer term.

GDR (*incentivized)

Ensure MSG attainment for at least 70% of customers before their contract ends to facilitate renewals.

Account Strategy

Meet quarterly net savings targets specific to the POD.

Ensure at least 70% of assigned accounts are operating in favorable account health.

Leadership

Empowering and ensuring the POD’s buyers achieve at least 70% of their targets quarter-on-quarter.

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* Only the GDR KPI attainment will be considered for incentive calculations.

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Role: Buyer

The KRAs of Buyers are split into the following 3 categories:

Procurement Handling

Negotiation Excellence

Vendor Relations and Internal Support

Procurement Handling

Savings & Benchmarks Management: Take ownership of and manage the procurement process for each assigned request, focusing on achieving savings and benchmark targets.

Timelines & TATs: Ensure timely procurement processes, including adherence to the set Turnaround Times (TATs) and meeting procurement deadlines.

Procurement Updates: Provide regular and comprehensive updates on procurement progress to keep stakeholders informed.?

Negotiation Excellence

In-depth Deal Explanations: Offer detailed explanations of deals and quotes during negotiations to ensure clarity and transparency.

Cost Avoidance Strategies: Develop and implement strategies to avoid unnecessary costs, optimizing procurement outcomes.

Qualified Requests: Ensure procurement requests have been properly qualified by SaaS Analysts and the required data is available. Never negotiate without a qualified request.

Competitive Sourcing: Reach out to multiple resellers to obtain competitive quotes for every procurement. In cases involving vendors/OEMs, assess pricing and quotes for alternative solutions meeting the requirements. Ensure no negotiation is concluded without considering other resellers/vendors/alternatives.

Benchmark Savings: Strive to negotiate and secure the best deals and savings for each procurement, aligning with or surpassing existing average benchmarks for the tool.

Data-Driven Negotiations: Collaborate with SaaS Analysts to gather tool-specific usage insights and leverage them during negotiations.

Documentation: Document all savings, procurement details, and negotiation strategies for benchmarking and case study purposes.

Escalations: Identify and promptly escalate parallel negotiations to the SaaS Analyst and Engagement Manager of the customer's POD when identified.

Timely Updates: Ensure daily negotiation and procurement updates via ClickUp following the prescribed format. Respond to all communications within 24 working hours.?

Vendor Relations and Internal Support

Vendor Relationships: Build and maintain strong vendor relationships to facilitate successful negotiations.

Playbooks and Case Studies: Create negotiation playbooks for tools where benchmark savings were set. Save negotiation call recordings in a playlist for training and playbook purposes. Develop case studies for exceptional negotiations, benchmark savings, innovative negotiation strategies, or insightful procurements handled.

Achievement of Savings Targets: Achieve quarterly savings targets set for you as a Buyer.

Supporting Engagement Managers: Collaborate with Engagement Managers to achieve Quarterly POD savings targets. Fully support the PODs for all procurements you handle, offering negotiation expertise and timely updates.?

KPIs (Key Performance Indicators):

Savings Quota (*incentivized)

Achieve at least 70% of the individual savings targets (quarterly).

Savings Benchmarks

Attain a minimum of 70% of the average savings benchmarks for 80% of the procurements handled.

Negotiation TATs

Adhere to the following TATs for closing negotiations:

New Requests = 15 Days

Renewals = 60 Days

Visibility and Communication

Ensure daily ClickUp updates (every 24 hours) on all working days. Respond to all communications within 24 working hours.

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* Only the Savings Quota KPI attainment will be considered for incentive calculations.

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Role: SaaS Analyst

The KRAs of SaaS Analysts are split into the following 3 categories:

Procurement Lifecycle Management

Customer Experience

Data, Reports, and Extra Projects

Procurement Lifecycle Management

Procurement Request Intake: Collaborate with customers to facilitate timely procurement requests on the platform. Develop a framework for escalation and people matrix within the customer's organization in partnership with CSMs.

Procurement Qualification: Take ownership of procurement request qualification and disqualification. Scope requests by sending Pre-Approvals and engaging with customers when there are delays. Disqualify requests lacking essential details or lack of responses. Involve CSMs and EMs if customers repeatedly submit incorrect requests.

Updates & Project Management of Procurements: Ensure timely handover of procurements to the Buyers after qualification for the negotiation process. Responsible for collecting procurement updates, maintaining ClickUp organization, and preventing procurement aging. Share Procurement Updates with CSMs, if required, for their check-in calls, based on information provided by Buyers.

Platform Sanity: After procurement handover from Buyers (including the Final Quote, Savings Template Approvals, and the final signed contract/PO/Invoice), oversee the timely closure of contracts on the platform and manage sanity, including canceling aging requests.

Monitoring the Ageing of Procurements: Monitor procurement aging daily. Flag any breaches of Turnaround Time (TAT) to Buyers handling the procurement and collaborate to reduce aging TATs.

Customer Experience

Check-in Calls: Actively participate in customer check-in calls alongside CSMs, contributing expertise in data analysis and translating procurement efforts to customers.

Bi-Weekly Updates: Develop a bi-weekly email framework, in collaboration with CSMs, Buyers, and EMs to send action-oriented customer updates. Send bi-weekly email updates to customers, with a focus on procurements.

Onboarding Accounts: Attend onboarding calls from day 1 with EMs to establish customer relationships, monitor SaaS stack updates, conduct ATS deficit analysis, and track the SaaS Spend Calendar.?

Data, Reports & Projects

SaaS Analysts will be responsible for running the POD with Data-Driven Insights and Reporting. Some of the reports are broadly categorized into the following:-

Upcoming Renewal Calendar: Create a renewal calendar for the next quarter, 4 weeks prior to the start of the next quarter, based on the current SaaS stack on the platform. Share it with EMs, Buyers, Customers, and CSMs, monitoring it regularly to facilitate requests.

Monthly Analysis (ATS, MRS, and MSG): Weekly analysis of customer's ATS and trend-mapping the ATS changes. Discuss this in weekly POD catch-ups and report it to internal leadership in monthly email chains. Also, report on deficits in ATS due to sunsetted/offline contracts.

Onboarding Accounts Audit: Collaborate with EMs to verify the data as per the onboarding checklist before the customer is transitioned to a specific POD. Perform a thorough ATS audit of onboarding accounts, ensuring at least 75% of ATS is uploaded on the platform before onboarding completion. Report these numbers to EMs and CSMs once onboarding starts.

POD Weekly Catch-up Framework: Develop a framework for weekly catch-ups, including the People Matrix and Sentiment and Requests Audit. Work with CSMs to complete the People Matrix and run it weekly during POD catch-up calls.

Management Hub Insights: Utilize the Management Hub on the platform to create reports to be shared monthly with customers and internal stakeholders. Highlight improvements on each customer check-in call as necessary.

KPIs (Key Performance Indicators):

Procurement Lifecycle Management

Initiating pre-approvals or qualifying requests within 24 hours of the requests being assigned.

Daily monitoring of procurement aging.

Timely flagging of TAT breaches.

Customer Experience

Regular procurement updates and running check-in calls along with CSMs on a periodical basis.

Data & Reporting

Weekly request tracking and ATS trend mapping for POD catch-ups. Flagging any data abnormalities.

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