Steps for Implementing E-Procurement Strategy

A large number of modern-day organizations prefer to go with e-procurement because of its simplistic approach. It will not be wrong to say that e-procurement is the call of today. With traditional sourcing activities being common, the concept of e-procurement has started to gain popularity in the global arena. Many business firms are seeking advice from procurement experts in this regard. With their assistance, companies are channelizing their e-procurement operations to their benefits. However, implementing an e-procurement strategy is not an easy task for organizations. Companies have to conform to some guidelines to make their e-procurement strategy a success.

What are the Stages for Implementing E-Procurement Strategy?

The stages for implementing an e-procurement strategy are discussed as under:

I. Identify the e-procurement needs

At the initial stage, organizations have to identify their e-procurement needs. Companies should assess and document their prevailing and future sourcing processes. In this way, companies can develop a mapping of their current sourcing operations. After identifying the needs, organizations have to determine the procurement arrangements. These arrangements should be done in a manner so that the companies can cope up with new-age consumer demands.

II. Identify the flaws

Every strategy has its flaws. There is no doubt about this fact. When the organizations start to identify the shortcomings in their sourcing strategy, they can take steps to improve the current situation. All these gaps in the sourcing strategy should be removed from the part of companies. This will increase the efficiency of organizations at large. Many organizations hire sourcing freelancers to detect the flaws in their procurement strategy. An advantage of hiring freelancers is that they charge less while catering to the goals of a firm.

III. Plan the e-procurement strategy

Before planning the e-procurement strategy, organizations should list the benefits associated with this strategy. If the planned e-procurement strategy is approved by the management, it is the time to set clear KPIs. Thereafter, companies should assess the current gaps in their sourcing strategies while simultaneously judging the expectations from the e-procurement process. Apart from these, human and financial resources must also be taken into account. Procurement experts help companies in formulating their sourcing strategies.

IV. Find the best fit

Organizations need to consider several aspects before selecting the best e-procurement service providers. The budget and business requirements must be considered in this phase. However, organizations should not make decisions based solely on price. High-quality services indeed tend to have higher prices. Most companies shy away from their decision if the prices exceed their budget. The history and professional experience of the e-procurement service providers must also be taken into account.

V. Implementation

After selecting the e-procurement service provider, it is time for implementation. The implementation process can be smooth if an organization’s employees perform their job roles effectively.

Organizations should be careful enough while formulating their e-procurement strategies. The sourcing freelancers help organizations to gain the most out of their procurement scenario. If you run an organization, take care of the little details before implementing the e-procurement strategy.