Digital Transformation of Procurement – How to Avoid Common Mistakes (Part 1)

“Why don’t you learn from my mistakes? It takes half your life to learn from your own.”
(S. Delaney)

Digital Transformation of Procurement – How to Avoid Common Mistakes (Part 1)

Digital transformation of Procurement is a very important step in the improvement of your business. However, when introducing a new mode of operation in your company, it is important to make sure that you don’t fall into typical traps. In order not to waste time on learning from your own mistakes, we bring you some of the most common mistakes your business can experience during this digital transformation and short tips on how to avoid them.

  • Don’t use the procurement software as a mean of employee control!

Software solutions are often associated with phrases such as “not allowed”, “forbidden”, “rejected” or “preventing unauthorized actions”, which cause negative connotations. If employees don’t see the good side of using a new software solution, they’ll refuse to use the product because they’ll feel branded. Do not bureaucratize your procurement – trust your employees and concentrate on the functionalities that will improve your processes.

  • Don’t involve third parties – ask your Procurement!

Many companies make a mistake overlooking the importance of procurement experts in the Procurement automation process. The IT department is surely important when introducing new solutions, but IT can’t know what the procurement’s needs for successful task completion are and which functionalities will solve the problems they face. In the process of finding the software that best suits your business, give your procurement professionals the main word – they are the ones who will use it on a daily basis. Together you will surely find an ideal solution, while others can be gradually involved in the realization process after your decision.

It’s important to keep in mind that the opportunities the procurement software offers will come to the fore only in the hands of your procurement specialists: they will know how to control and manage data, suppliers, and materials properly, develop categorization, create contract templates, requirements, specifications, strategically negotiate and analyze. If the procurement software is carefully chosen, the procurement department has less operational work, and thus more time to think “outside the box”. Such approach will bring to your company many benefits.

  • Avoid In-House Solutions!

Aside from being extremely expensive, In-house solutions can often become outdated, not meeting the requirements of your business anymore: it’s pretty likely that, after some time, the system won’t suit your business or the way in which new employees work. That’s why Cloud Services (SaaS) such as Ensolva are increasingly being used. Ensolva’s implementation is fast and does not require a high initial investment. In addition to that, the software is designed for quick and easy integration with existing business systems. With the SaaS pay-as-you-go model, you usually do not see a bill until after you have already started using the service. This allows the software to be paid as much as you really use it, as well as to adjust the number of system users and the scope of functions at any time according to the needs of your business. Be flexible and ready for the change. And remember: Cloud solutions are always a better choice.

We hope this list will help you avoid the traps that are common during the digital transformation of Procurement. Since this is a very extensive topic, we will write about the traps of digital transformation next week too. Follow our blog and save your time and money!

Photo by Jannoon028 / Freepik


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