Implementing a new procurement software solution can be a challenging process and one that requires an extensive analysis and involvement from a number of stakeholders within the business. It cannot simply be a task delegated to the Procurement department. Nor can it be a matter of just going with the “best” software on the market. It SHOULD be a matter of choosing the technology that best fits in with your company’s needs.
Moreover, implementing a procurement software solution should bring you closer to achieving procurement excellence.
So, how can you know which procurement technology is the best technology for your business? We think there are 4 elements you should be aiming towards when building a business case for a new procurement software solution:
Standardisation in procurement varies from business to business, but all involved parties should adhere to the same guidelines when procuring supplies.
One of the main reasons behind implementing a procurement software solution is the need to align procurement processes within the organization. This will help companies improve spend analysis and consequently find new methods to reduce cost, simplify processes and reduce errors due to manual efforts.
Going digital should contribute to the quality of your data, which on the long term will help you make better informed business decisions. Nonetheless, this process also means your business needs to up its game in terms of data accuracy and data-driven and collaborative business processes, before implementation, to set the scene for the new digital strategy.
The procurement department must not forget that its purpose is to serve the needs of the business. As a step in achieving procurement excellence, we already know that it’s a must to align the procurement strategy to the business strategy.
In the same manner, when choosing to implement a procurement software solution we need to make sure it is consistent with the organisation’s business processes and that it will smoothly integrate with them.
Also, you need to make sure it integrates with the rest of your software, of which the ERP holds an important place.
When we talk about consistency we should also take into account the cost factor. The cost of implementing a procurement software should be consistent with the performance and size of the business.
Technology aims to make our lives easier. Just the same, a procurement software solution should aim to help run the business faster, easier, and be less prone to errors – in other words be more efficient.
How does this translate into actual facts? There a few things to consider.
Procurement technology should help reduce the time spent on manual processes while automating them. No matter how wide and diverse the network of suppliers, an efficient procurement software will speed up processes and increase accuracy of order, shipping, and invoice processing.
Another thing to consider is an analysis of the whole software suite. For example, for big size companies it might worth considering a larger P2P software suite, that offers various other tools that will help them run the business more efficiently.
Building a business case for a new procurement software solution can be a challenging process, and one that should involve all areas of the business. Moreover, sometimes it is advisable to involve external parties, to help you get a professionally objective opinion and a broader perspective on the aspects that should be taken into account when choosing a new procurement software solution.
You can read more about the journey to reaching procurement excellence in our eBook “7 Steps to Procurement Excellence”.