Making the change: benefits of e-procurement

Bringing your procurement process online? As with all change management, employee buy-in is a challenge that needs to be overcome at the earliest opportunity.  Evidence continues to mount that companies are not availing of the full benefits of e-procurement due to partial adoption by employees and persistent maverick buying.

For example, a 2012 survey by State of Flux found that most companies under-utilise their e-sourcing systems. The authors noted that ‘better communication and stakeholder management appears key to embedding e-sourcing tools and realising a return on the investment in technology’.

The proven benefits of e-procurement – including a clear and realistic vision of how individuals, teams and the organisation will profit – is an essential aspect of this communication.

The following are among the many proven benefits of e-procurement:

  • Reduced costs
  • Increased supplier competition
  • Time saving
  • Shortened procurement cycle
  • Maintaining compliance
  • Knowledge management
  • Quicker evaluation
  • Sustainability promotion

Many of the above can be specifically linked with improved performance of procurement personnel, thus providing motivation to buy in. For example, the knowledge management capacity of eprocurement (capturing data, producing reports, etc.) gives procurement personnel greater strategic influence on business direction, while time saving is brought about by elimination of repetitive paperwork and facilitates an increased focus on long-term projects and objectives.

Good communication is vital for effective change management. Employees are far more likely to make the most of a new process or tool if they are invited to explore the benefits. Or in the words of our Whitepaper, and in the specific context of e-procurement: ‘the start point in implementing e-procurement is to make the case for change. If employees with responsibility for buying are unconvinced of the rationale for change, they are much less likely to be supportive and co-operative. Making the case for e-procurement should focus not only on its criticality for firm competitiveness (and hence their jobs) but also on why it can make them more effective in their procurement tasks.

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