5 Things to Address Before Implementing eProcurement Software

Implementing eProcurement platform is a complex undertaking. Despite the promise of improved efficiency and cost savings, the reality can be sobering.

Research estimates that up to 90% of procurement software rollouts fall short of expectations. This high failure rate isn't just a statistic—it represents wasted resources, frustrated teams, and missed opportunities for strategic improvement.

You're likely eager to modernize your procurement processes, but rushing into implementation without proper groundwork can lead to disappointment.

The good news? With careful planning, you can significantly increase your chances of success. Here are five critical elements you need to address before implementing an eProcurement solution:

1. Clear Objectives and KPIst

You need well-defined goals for your eProcurement implementation. Consider these key questions:

• What specific problems are you trying to solve?
• Are you aiming to reduce procurement cycle times?
• Do you want to cut costs or improve compliance?

For instance, a manufacturing company might set these goals:

• Reduce purchase order processing time by 50% within six months of implementation.
• Cut the PR-to-PO cycle time from 5 days to 2 days.
• Improve supplier compliance rates from 85% to 95% in the first year.

They could track these using metrics like:

• Average time from requisition to order placement.
• Percentage of POs processed within the target timeframe.
• Supplier compliance score based on predefined criteria.

Establishing such concrete objectives and key performance indicators (KPIs) gives you a roadmap for success.

2. Stakeholder Buy-In and Change Management

eProcurement affects various departments across your organization. You need buy-in from all stakeholders to ensure smooth adoption. This includes not just procurement but also finance, IT, and end-users in different departments.

Resistance to change can derail even the best-planned implementation. In fact, 70% of change initiatives fail due to employee resistance and lack of management support. Consider forming a cross-functional team to champion the project. They can help address concerns and showcase the benefits for each department.

For example, you might show the finance team how the new system will provide better spend visibility while showing end-users how it will simplify their purchasing process. A robust change management plan, including training and ongoing support, is crucial for successful adoption. Organizations that integrate change management are 47% more likely to meet their objectives.

3. Data Cleansing and Integration

Your eProcurement system is only as good as the data it uses. Before implementation, you need to ensure your data is clean, accurate, and properly structured. This includes supplier information, product catalogs, and historical purchasing data.

Poor data quality can lead to errors, duplicate entries, and inefficient processes—negating many of the benefits of eProcurement.

Additionally, consider how the new system will integrate with your existing ERP, accounting, and other relevant systems. Seamless integration is key to achieving end-to-end procurement efficiency. You might need to allocate significant time and resources to data cleansing and system integration, but it's an investment that pays off in the long run.

4. Process Standardization and Optimization

eProcurement implementation offers an opportunity to streamline and standardize your procurement processes.

Before selecting a solution, map out your current processes and identify areas for improvement. Are there unnecessary approval steps that could be eliminated? Can you standardize processes across different departments or locations?

For instance, a multinational corporation might use this opportunity to create a global procurement policy, standardizing processes across all its subsidiaries. This not only improves efficiency but also ensures better compliance and spend control.

Remember, eProcurement software should adapt to your optimized processes, not force you into rigid, pre-defined workflows.

5. Supplier Readiness and Onboarding

Your suppliers play a key role in the success of your eProcurement implementation. Assess their readiness to integrate with your new system.

Can they provide electronic catalogs? Are they capable of processing electronic purchase orders and invoices? You might need to work closely with key suppliers to ensure they're prepared for the change. Develop a plan for supplier onboarding and training.

Consider starting with a pilot group of suppliers before rolling out to your entire supplier base. This allows you to iron out any issues and demonstrate the benefits to other suppliers, easing the transition.

Final Thoughts

Implementing eProcurement software is a big undertaking, but with proper preparation and the right execution, it can transform your procurement function.

At mjPRO, we've guided numerous organizations across various industry verticals through successful eProcurement implementations. Our experience shows that addressing these five key areas increases your chances of success.

The goal isn't just to digitize your existing processes but to leverage technology to drive strategic value for your organization. Get in touch with us, and let’s discuss “how.”