Unifying Efforts: Effectively Employing An E Procurement Solution
E PROCUREMENT SOLUTION
The process of source-to-pay can be complex for any organization, as managing and tracking procurement of goods and services can quickly become an intricate web of stakeholders, vendors, and other external parties. Manually and physically tracking all components of the source-to-pay process leads to dissemination of information, inefficiency, and unnecessary cost. An effective procurement solution helps enterprises to streamline the supply chain, increase cost savings, and provides necessary transparency into the procurement process.
For C-suite executives looking to upgrade to SaaS procurement platform, this guide will provide brief overview of the related solution, important steps to take, and things to consider before implementing system.
Step One Researching and Compiling Essential Information
Before an enterprise can begin exploring and assessing potential solutions, it is essential to compile some basic information that will guide the search. The future success of an procurement system depends largely on understanding relevant procurement regulations, the current supplier ecosystem, and the scalability of the desired solution. Within the scope of the supply chain, information should be gathered on all areas, from contract management to invoice processing, as well as asset management, accounts payable conversions, and transactional costs. As all stakeholders? needs and objectives should be accounted for in the procurement process, information should also be gathered on relevant processes and procedures.
Step Two Narrowing Potential Solutions
Having established an understanding of all the necessary components, executives can move on to the first stages of comparing solutions on the market. Initially, enterprises should aim to create list of relevant solutions that possess the features and capabilities required for the organization. In order to truly identify the most appropriate procurement solution for the organizations needs, executives should consider the organizations scale, growth and adaptability, as well as the legacy systems? compatibility. As the initial phase of research may uncover too many solutions, the selection list should first be narrowed and pruned down in the next step.
Step Three Exploring Solutions in Depth
In-depth exploration of each solution?s features should begin with thorough examination of the benefits that each offers. As the SaaS solutions on the market can be vast and varied in capabilities and resources, differentiating between functionalities that are critical to higher procurement effectiveness, along with cost savings, and those that are optional can be challenging task. Reviewing user feedback and vendor case studies may also prove an effective way to decide which solution to pursue.
Step Four Understanding Total Cost of Ownership
Prior to signing off on solution, it is important to understand both the hard costs and the total cost of ownership (TCO) in order to develop real budget. The TCO comprises of host of factors, such as license costs, administrative costs, implementation fees, maintenance fees, and customization fees. clear evaluation of these will enable executives to better understand the true costs of particular solution, in addition to its ROI, as seen from the C-Suite?s overseeing perspective.
Step Five Assessing Performance
When it comes to assessing performance, it is important to find balance between instinct and statistics. Along with measuring key performance indicators and metrics such as supplier on-boarding times and supplier quality ratings, it is important for executives to understand how solution will perform in light of the supply chain ecosystem?s complexity. As result, more subjective methods such as user feedback, benchmarking, and supplier behaviors should be taken into consideration.
In Conclusion
Many organizations have reaped the benefits of an effective procurement system, as it reduces costs, optimizes vendor relations and tones, and streamlines the supply chain’s operations, all while ensuring compliance with procurement regulations and legislation. With the detailed steps outlined in this guide, C-suite executives should be able to create and understand an effective and optimized procurement system.
