„Awareness is like the sun. When it shines on things, they are transformed.“
(T. N. Hanh)
Digital Transformation of Procurement – How to Avoid Common Mistakes (Part 2)
In the previous article we have discussed the three most common traps in which companies get into during the digital transformation of their procurement processes. Since there’s a lot more of them than only these three, we bring you some other mistakes we had the opportunity to encounter.
It’s not all about money!
When choosing the procurement software that will improve processes in your company, focus on its functionality and the benefits that it will bring to your company. Quality solutions are often initially more expensive, but will bring multiple benefits for your company in the long run. Saving money at the expense of quality is ultimately a bad decision, as lower costs often come with narrower functionalities. A quality solution for digital transformation of procurement is always worth investing in because quality software will bring immense benefits to your business.
Don’t put everything in the same pot!
Companies often use some ERP modules in Procurement but ERP systems don’t have specialized modules for supporting the whole procurement process. ERP systems usually support only requisitions, orders and contracts, which means they’re missing all the things “in between”. ERP modules are very useful for Accounting and Controlling but, on the other hand, very cumbersome from the point of Procurement. Because of task complexity in Procurement, ERP systems can’t fulfill all the needs of this particular department, which also means they can’t enhance its productivity. That’s why companies increasingly switch over to specialized solutions like Ensolva.
Do not rush into increasing functionality and expanding the number of participants!
The procurement software will become useful to your business as soon as it becomes the digital support to your procurement process. However, if you add them a number of new functionalities and increase the number of users drastically, the digital transformation of Procurement can become counterproductive. Give your employees some time to adapt to the new solution and learn how to use the software, not only they will be grateful but their productivity will increase.
Always use one e-platform!
Each manager has its favorite software solution that he’s used to, and he considers it best for fitting the needs of its department. However, don’t forget that, although being in different departments, you all work for the same company. While choosing your procurement software, please have in mind that it has to comply with the digital strategy of your company and all the users in Procurement have to work on the same platform. In order not to waste too much time on adaptation and data synchronization, choose the software that will integrate easily with solutions the company already uses (i.e. the existing ERP system). Make sure to find a compromise and choose the solution that will meet the needs of your organization as a whole.
Digital transformation of Procurement is no longer an advantage but a necessity. Make a research carefully and choose the procurement software that will meet the needs of your Procurement – yet your procurement professionals are the ones who will use the software on a daily basis in order to achieve best results possible. If you have some more examples of mistakes that we didn’t mention, feel free to share it with us. We’d be glad to hear about your experiences and share it with other procurement professionals!