16 Jul 2003
Electronic procurement has been around for a while, but according to analysts has now reached maturity and has started to deliver some very significant benefits. However, simply buying some software plugging it in and waiting for the benefits to roll in, will prove a fruitless exercise.
Fran Howarth, practice leader of enterprise business applications at Bloor Research says it is essential that public sector bodies regard e-procurement as part of the bigger procurement picture.
Further reading
'Users have to examine their existing business processes because you can't change them if you don't know what is going on at the moment,' Howarth said.
'You also have to get a sufficient number of people to use it and get suppliers up and running, and make sure you measure what you're doing. Unless you measure what you're doing, you're not going to use it,' she said.
Sound Advice:
I fully agree with Emma Nash's opinion, but I would take it even a step further.
In the end, a procurement system is only as good as the savings that can be captured by it. And how often does it happen that contracts with suppliers are developed that are completely unworkable from an end-user perspective or have a big impact on both corporate and supplier resources? To avoid maverick buying, unforeseen workload impacts, it is therefore key that the buyer involves procurement experts as part of a cross-functional team. The purpose is to already evaluate at an early stage the feasibility of being able to translate sourcing strategies against a procurement tool.
Early P2P-involvement can thus significantly support the development of a more efficient sourcing solution ensuring forecasted savings are more likely to be captured.
Posted by: Antal Kamps 08 Mar 2007
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