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Key factors for
E-Procurement implementation
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While e-procurement offers many quantifiable benefits, it still
poses many issues that must be carefully considered before implementing a specific solution.
Effectively addressing these issues will help ensure both a rapid and a complete implementation—one that will
help your organization realize all the benefits of e-procurement, including a lower initial system
investment and an increased return on your investment.
Consider these questions before you choose an e-procurement
solution or provider, and consider how your answers will help you minimize the risks and maximize
the rewards of your new system:
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Is my organization ready for e-commerce?
Do you already have an e-commerce strategy? How will
e-procurement integrate into that strategy? If you don’t have an e-commerce strategy in place, how
can you build one that will support e-procurement as well as all future e-commerce activities?
How will I bring my suppliers on board?
E-procurement will change the buyer/seller relationship. How
will your current supplier relationships need to change to maximize the
e-procurement solution? What strategies must
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be developed to build and maintain those
relationships?
How will my current
procurement processes need to change to maximize
e-procurement?
Is your business model aligned with your system
model? Where are the gaps and how can they be closed?
How can I create a scalable
infrastructure that will support future growth?
Industry studies indicate that e-procurement is poised for explosive growth.
Factors driving this growth include the number of buyers and suppliers
participating, increased accessibility to authorized users
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throughout an organization, improvements in Internet
e-commerce software, and organizational growth. This translates into increased transaction volume that
can easily overwhelm the capacity of an e-procurement system. Will your current infrastructure
support e-procurement? Is your hardware configuration scalable to support additional servers,
processors, and an increase in transactional volume? Note that e-procurement software must be object-based to support
the addition of custom or third party applications, as well as easy integration with your
current back office systems, as the needs of your marketplace change.
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