• Written by Azhar Aliyar, Director

A purchasing manager at a large organisation is tasked with deciding whether to implement an internal tool or a vendor platform to manage their procurement data, and they need to consider the total cost over three years, including the people required to maintain and support the system. This decision is critical as it will impact the organisation's ability to query its own data in natural language and get answers in real time using AsscherAi, a platform built by Harns Technologies.

What each option genuinely commits you to

An internal tool commits you to the cost of development, maintenance, and support, which can be substantial. The development process can be time-consuming and may require significant resources, including personnel and infrastructure. Additionally, the organisation will be responsible for ensuring the tool is compatible with existing systems and software, which can be a complex task. On the other hand, a vendor platform commits you to a recurring subscription fee, which can be a significant expense over the three-year period. The organisation will also need to consider the cost of customisation, integration, and support, which can add to the overall cost.

The decision to choose an internal tool or a vendor platform should be based on a thorough evaluation of the organisation's needs and resources. The purchasing manager should consider factors such as the complexity of the procurement data, the number of users, and the required functionality. They should also evaluate the organisation's IT infrastructure and resources, including personnel and budget.

The case where the other one is right

There are cases where a vendor platform is the better choice, such as when the organisation lacks the necessary resources or expertise to develop and maintain an internal tool. In such cases, a vendor platform can provide a cost-effective solution that is quick to implement and requires minimal maintenance. On the other hand, an internal tool may be the better choice when the organisation has specific requirements that cannot be met by a vendor platform, or when the organisation wants to maintain control over the development and customisation of the tool.

A vendor platform can also be a good choice when the organisation needs to integrate the procurement data with other systems or software, such as AsscherAi. In such cases, a vendor platform can provide pre-built integrations and APIs that can simplify the integration process. However, the organisation should carefully evaluate the vendor's reputation, support, and customisation options before making a decision.

The cost that only shows up later

One of the costs that can be easily overlooked is the cost of customisation and integration. While a vendor platform may provide a basic set of features, the organisation may need to customise the platform to meet its specific requirements. This can be a time-consuming and expensive process, especially if the organisation lacks the necessary expertise. Additionally, the organisation may need to integrate the vendor platform with other systems or software, which can add to the overall cost.

Another cost that can be overlooked is the cost of support and maintenance. While a vendor platform may provide basic support, the organisation may need to purchase additional support packages or hire external consultants to provide customised support. This can be a significant expense over the three-year period, especially if the organisation has a large number of users or complex requirements.

A way to decide without a six month evaluation

One way to decide between an internal tool and a vendor platform without a six month evaluation is to conduct a thorough review of the organisation's requirements and resources. The purchasing manager should gather input from stakeholders, including users, IT personnel, and management, to determine the necessary functionality and features. They should also evaluate the organisation's IT infrastructure and resources, including personnel and budget.

The purchasing manager can also use tools such as AsscherAi to prototype and test different solutions, which can help to identify the best option. Additionally, they can consult with external experts or vendors to gain a better understanding of the options and their associated costs. By taking a thorough and structured approach, the purchasing manager can make an informed decision without the need for a lengthy evaluation period.

What this does not do, or when it is the wrong choice

This approach does not provide a definitive answer to the question of whether to choose an internal tool or a vendor platform. The decision ultimately depends on the organisation's specific needs and resources, and there is no one-size-fits-all solution. Additionally, this approach does not take into account other factors that may influence the decision, such as the organisation's strategic goals and objectives.

In some cases, the decision to choose an internal tool or a vendor platform may not be the most critical decision. For example, if the organisation is undergoing significant changes or restructuring, it may be more important to focus on other priorities. In such cases, the purchasing manager should consider seeking external advice or consulting with experts, such as those at Harns Technologies, to determine the best course of action.