Contracts for Procurement Systems

I am working on revamped pricing for our estimating and procurement system and was having a discussion about terms. The question of contract terms and the length of the contract came up. There are some that will use a one year agreement as a selling point. However is that really good for the print buyer in the long run? Has our society become so bent on instant gratification that we can see the trees through the forest? Buyers need to be able to evaluate system needs up front before entering into a system without knowing what they are getting. So the up side to a short term agreement is "Well I only have to use this for a year then I can get out and start looking all over again" or as a buyer you will get a sour taste in your mouth and the common statement then is "well all of these systems are the same and this one didn't work for me so none of the others out there will...it's just easier to do this manually anyway." I think what you miss by taking that kind of approach is that you do not see the long term benefit an estimating and procurement system can provide.

Now as a buyer I believe that a long term of 3 years is the optimal length of an agreement because it gives me the ability to gather data and to analyze my spend for at least two years of the term and then gives me an ability to at least start practicing forecasting in the third year of the term. By mid-year of the third year I should have enough data gathered to prove or disprove my forecasts. You see I believe that a system is not just purchased for the ability to improve you effieciency but also to capture and analyze the data from your purchasing to be able to better predict spending cycles. So a system is not just to make your job easier from day to day but it is also to gather information to help you make more informed purchasing decisions. So is it really worth your while as a print buyer to be using a system for a year to "evaluate" whether it is right for you up front? OR, is it better to know exactly what you want from a system and sign a long term agreement to get that information that will help you do a better job down the road?

What are your thoughts? Post your comments.

Have a great weekend!
John