How to Convince your Management for Investing in E-Procurement Solution?
Are you a Procurement Professional? Are you still not using any e-procurement solution? Isn’t it’s difficult to manage & track all of your vendor quotations & approvals? Especially when the number of transactions or number of line items is huge?
We are familiar that it is tough to deal with the management while convincing them for Business Transformation. But, it is essential to persuade them for the same, if it is in the interest of the organization.
Don't worry, we understand the key pain areas of the sourcing professional! Here are some of the ways that we would recommend you to undertake for convincing your management so as to take a decision in your favor.
8 Ways to Convince your Management for Investing in E-Procurement Solution
Don't worry, we understand the key pain areas of the sourcing professional! Here are some of the ways we would recommend you to undertake for convincing your management so as to take a decision in your favor.
1. Quicker RoI
There are two main reasons why every organization shall adopt an eProcurement software. i.e. Time-Savings and Cost-Savings. On one hand, it reduces the time spent on the various transactional activities. While on the other hand, with better negotiation strategies, you will be able to achieve impressive expenditure savings.
One thing which you shall keep in mind,
"Investing in eProcurement is not really an expense. You are investing in a tool, which will payback to you within a short span of implementation."
When purchasing a product through the e-Procurement solutions, it demonstrates a superior way of negotiating with the suppliers, demanding and comparing the quotations, displaying the product requirements/specifications for them, asking for the technical bid as well as multiple solutions from the supplier etc.
Hence, the time which you and your team had earlier spent in following up for the transactional activities can be conserved. You can utilize the saved time for strategic buying and focus on critical negotiations.
With the application of the eProcurement tools, your spend on purchasing the various goods and materials will reduce. It is notable that strategies such as Online Auctions and Negotiations can reduce your expenditure by 25%. It is said that A Penny saved is a Penny Earned. So you will be saving a good amount of money for your organization.
2. Better Compliance
Such sourcing softwares also provides a better insight and internal control of every buying decision. It will act as a single window view of all the transactions, decisions, justifications etc. This will simplify the audit for you and will also result in an increased level of compliance.
3. Reduce Maverick Buying
Maverick buying makes it difficult for organizations to keep a track record of all the purchases made. If an organization is using an eProcurement software, it will centralize the procurement of all the materials. Hence, the procurement manager will be able to view all the purchases made from the software itself.
The procurement software forms a chain, where the decision goes from person to person and is approved only when authorized by the authorizer.
4. Easily Accessible Functions
Using a P2P Software is extremely simple. With a minimal amount of training, anyone can start working on it easily from day one. It automatically prioritizes the Negotiation and Control aspects of the purchase process while making sure that administrative tasks become easier. This will make the procurement procedure in your organization smoother.
5. Supplier Relationship Management
Maintaining a sound relationship with the suppliers is a key to success for many. The source to pay software also possesses communication tools in it. Therefore establishing a communication channel within and out of the organization. This will bring transparency in the communications and you will be able to maintain good relationships with the suppliers.
6. Online Shopping Experience
Online shopping is simple for everyone. Implementing the eProcurement software solution, you will be able to get the same benefits as that of online shopping in your organization. This will give a boost to your in-house procurement efficiency.
7. Central Repository of All the Information
The eProcurement software acts as a central repository of all the information of authorized decisions, the status of each transaction, spend analysis, vendor negotiation pattern as well as vendor rating. Due to this, there wouldn't be any need to go through a lot of files just to get the precise data. Everything will be available at a single space with the real-time information.
8. Increase FTE Efficiency
In order to make maximum utilization of the available Human resources, it is necessary for the organizations to increase the FTE (Full-Time Equivalent) efficiency of the employees. A procure to pay software simplifies the tasks such that a single person can carry out the work of three. Thus, resulting in an increase in productivity as well as FTE efficiency.
We hope, these ideas will be helpful to you in convincing your management for the successful implementation of the eProcurement software in your organization. Good luck and keep progressing!