Choosing the proper eProcurement solution is a strategic choice for any organization that seeks to implement efficient e-procurement for the company. According to the latest studies, with the help of a good e procurement system, it is possible to achieve an optimization effect of 10-20% of the procurement costs and cut the ratio of maverick buying by more than a half. It also promotes spend control, increases preferred supplier usage, and offers a full picture of procurement spending.
To simplify the selection process, here are the 5 most important reasons to choose nothing but the best when investing in an eProcurement platform:
- Extensive Supplier Network
A vast pre-connected supplier base should be the first reason that can contribute to the decision of having an eProcurement system. The more suppliers on your list, the greater the chances of securing better costs through competitive bid and contractual prices for your business. Before making the selection, you need to make sure that the solution offers access to suppliers; local as well as global suppliers in all spending categories such as direct, indirect, services, etc.
Ideally, the network should be made up of thousands of suppliers across all sizes – big retailers, small and medium businesses, black-owned businesses, and more; it should afford the freedom of selecting suppliers based on the category requirements at the most affordable prices. For example, mature products may require a few small dedicated players while office supplies may call for a competition from large bulk suppliers.
It is also important that the solution provider should make repeated efforts to expand the number of suppliers across regions and categories. This opens up the visibility of your business to the broader market and caters for the possibility of uncovering the right supply source. It is also important to have a diverse and well-developed supplier network so that you receive the highest ROI from the system.
- Intuitive User Interface
The successful implementation of the eProcurement solution is highly dependent on ROE; one of the most crucial components of which is the ease of use by the users across the organization. When evaluating systems, measure the level of sophistication of the portal, ease of understanding of menus and terminologies used, option of catalogue/non-catalogue/services procurement within the same view and the graphical representation of significant analytics.
This fosters the idea of the natural application of the system as staff of all ages and technical abilities can easily navigate and work with the system. The features should include the ability to browse items to catalogue, ability to configure workflows, approve from one’s mobile device and ease in processing invoices.
- Integration with Existing Systems
The eProcurement system should seamlessly interface with your ERP and any other legacy applications used for accounting, payment, procurement, travel, expenses, etc. Thus creating vertically integrated applications is counterproductive as they create process inefficiencies, require a lot of manual intervention and do not enable an organization-wide view of procurement and spending.
Thus, APIs should be available with minimal integration time, effort and response times across all the systems necessary. This makes important processes such as generation of purchase orders and invoices easy, transmission of payment files efficient, management of procurement data reconciliation with accounts easy, and consistent master data across several connected systems.
Assess if the provider abides by industry standards of integration as well as their experience in integrating with the ERP system you use. A vast set of pre-built connectors also enhances the interoperability/frequency of connecting applications. Close coupling of IT guarantees one gets to realize the set ROI objectives with velocity as a result of the optimization of fragmented financial and procurement processes.
- Latest Technology Advancements
The ability and sustainability of any software solution is established on the technology used. Therefore, the eProcurement system has to be designed futuristic with the advanced features in digital platform, data security, analytical tools, mobility and user interface.
Possible innovations to look forward to involve smart suppliers’ suggestions based on artificial intelligence, AI-driven automated improvement of specific work processes, virtual buying companion, secured blockchain platforms, deeper and detailed analytical tools that can drill down deeper into functionalities that are specific to buying, buying-related apps that are dedicated and unique, and conversational interfaces or digital buying agents.
The solution should also contain more organized programs aimed at informing the users how to best utilize such tools in the quest for increased efficiency. In your case, you should prefer cloud based rather than on premise systems as you can access them easier, and get more easily scalable and have regular feature updates due to the SaaS model. Defining technology innovation as an evaluation criterion guarantees that the solution offers maximized value with long-term usage.
- Exceptional Service Reliability
In the solution evaluation phase, the reliability of customer service provided by the eProcurement vendor must be given substantial attention. Service experience is a core determinant of user take-up and churning out of maverick channels – two of the most important value levers.
There should be localized help desk support which should be available through phone, email or chat so that the user’s queries can be addressed at the earliest. Options for customers to report issues and the ability to see the status of the issue’s resolution through portals also contribute to giving clients a transparent view on the matter. It should also have the capacity for remote diagnostics and accessibility of specialist support on-site, if needed.
In addition to responding to issues as they arise, the vendor should constantly work on cultivating client relationships through account management, user groups that offer and disseminate best practices, training sessions, and fitness tests. Make sure these are included in the deployment costs without having to write a long and winding contract. This exceptional reliability in service delivery means that your eProcurement program achieves desired ROI outcomes.
Conclusion
Evaluating the right eProcurement tool is an invaluable asset towards unlocking value levering spend analytics, increasing spend transparency, increasing policy compliance, optimizing supply management processes, and improving procurement KPIs. When considering solutions, do not simply concentrate on tendering and products that sell on catalogues. Pay equal attention to large supplier coverage, intuitive user interface, organized IT integration, state of the art technology and excellent customer care.
