How does Step by Step eProcurement Adoption affect your Procurement Chain?

Due to cost factors or because of the requirements, the organizations often opt for a 'Mid-Way' instead of the whole 'Procure-to-Pay' eProcurement Software. In this article, we are discussing on the parameters which one must consider while deploying an eProcurement Software in your organization.

24th Dec 2018
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Since it's inception in the 1980s, the term 'eProcurement' is gaining popularity at a rapid rate. From the discussions in the webinars and conferences. Now it is widely discussed on the coffee table for implementation in the organizations.

On one hand, procurement is an essential part of every organization's functioning. Whereas, on the other hand, every organization is seeking ways to reduce their expenditures. At such time, the decision for opting on the implementation of eProcurement Solution is a time-consuming procedure for many.

Either due to cost factors or because of the requirements, the organizations often opt for a 'Mid-Way' instead of the whole 'Procure-to-Pay' Software. However, it shall be noted that it carries few advantages as well as disadvantages.

Today, we are discussing some factors, which might occur due to step by step adoption of eProcurement Software.



Advantages of Step by Step eProcurement Adoption

Step by Step deployment of an eProcurement solution carries some benefits. Some of them are mentioned below:

Accomplishes your Requirements

Different organizations have their own specific requirement from the eProcurement software. It is notable that a complete 'Source-to-Pay' solution might not be in their scope. Hence, the partial implementation of eProcurement Software Solution can accomplish the requirements of organizations which are possessing a short-term goal or requirement in their procurement channel.

Less Operation Interruption

eProcurement is the complete transformation of the purchasing cycle. It requires training the users so that they accurately understand the solution which they are implementing. This might lead to disruptions in the ongoing procurement operations in the organization for some time duration.

Reduced Expenditure

When opting for Step by Step eProcurement implementation, you are dividing the platform as per your requirement. Therefore, you wouldn't be required to pay for the additional features which are of no use to you. This will reduce the expenditure that you might have incurred.



Disadvantages of Step by Step eProcurement Adoption

There are also some drawbacks of step by step eProcurement software adoption. Such as:

Not suitable for a long-term Strategy

If you are having some long-term strategy from your eProcurement software with regards to your procurement cycle, then the step by step implementation isn't an appropriate choice for you. While forming any strategy for your procurement organization, there is a need to look after the organizational, technological as well as the operational factors.

Not availing any part of the P2P software resembles the ignorance of either of these factors. For an instance, if you are not opting for the Technical Bid option, then you are missing on the technological comparison features of the software. Thus, if there is a long-term strategy in your mind, then we would recommend you to opt for the overall S2P software adoption.

Doesn't Enhance Efficiency

eProcurement Solution, when implemented with limited features doesn’t improve the efficiency of all the departments. Although the eProcurement software is capable of functioning as a standalone tool, it is recommended that you use it with the ERP Integration. An eProcurement software, when integrated with the ERP software provides superior results and takes the efficiency of your procurement team to the next level.

Leads to Visibility Gaps in the System

Every individual in the procurement cycle has its own significant role at different levels. If some of the processes are left out from the eProcurement cycle, then it might lead to visibility gaps in the organization. Due to this, some of the stakeholders might not be able to view the ongoing transactional activities.

If you are a large organization which is following all the steps right beginning from Purchase Requisition to Payment, then we would recommend you to opt for the complete Source to Pay eProcurement Solution. The step by step eProcurement adoption is only for those organizations whose core functionality is that particular notion of business.



Factors to consider while adopting an eProcurement Software

There are plenty of things to look into when implementing an eProcurement Software. However, there are some essential factors which you shall focus on. Some of these are given below:

Integration with ERP

This is one of the main things which the CPOs shall focus on while implementing the eProcurement solution. If the software cannot be integrated with the ERP, then the users will be required to manually enter all the data in the software. Thus, resulting in higher time consumption.

eProcurement software, when seamlessly integrated with the ERP Software provides higher value and automates the tasks of importing the data. Hence, the data will be automatically available in the software leading to superior time savings.

Following best industrial practices

With the advent of latest tools and technologies, the procurement channel and supply chain cycle is going through major disruptions. For an instance, GST implementation in India affected all the industries. At such time, many software products were required to update their features and deliverables in order to make their product GST Compliant.

Innovation is the only way to Win. - Steve Jobs

Hence, you must opt for the solution which follows the best industrial practices. The main features that one shall focus on include Total Cost of Ownership, Automatic Negotiations, Track of Delivery Schedules, Simplified Audit and a lot more.

SaaS Software or On-Premises Software?

Credits: Service Core
Credits: Service Core

One of the most crucial factors that CPOs are going through is whether to deploy SaaS-based procurement solution or an On-Premises solution. Both of them carries their own advantages and drawbacks such as:

Advantages of SaaS Deployment:

  • Less Operating Cost
  • Less Necessity of Technical Competency
  • No Hassle for maintenance

Advantages of On-Premises Deployment:

  • Complete Control on Operations
  • Higher Security
  • Customization through internal efforts

Recently, many organizations have done a paradigm shift to SaaS-based models because of ease of operation and less cost. However, when it comes to large corporations and government, where data security is a major concern, the preference should be on the on-premises software deployment.

We hope that the present comprehensive guide to Step by Step eProcurement Adoption has been helpful to you. If you need further assistance regarding eProcurement software, feel free to contact us and discuss in detail.

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Anupam Chaturvedi

Anupam Chaturvedi is a Proficient Writer, Marketer, Trainer, Poet, Blogger and a lot more! Always craving to keep learning in life is his main aim. Right now, He is working in the Marketing Department of an Ahmedabad Based Software Company MavenVista Technologies Pvt. Ltd. He is here to share his views on life, marketing, procurement, supply chain and logistics.

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