e-Procurement - Key Success Factors

Key Success Factors for the Successful Deployment of e-Procurement

• Consider using an "On Demand" or "Software as a Solution" (SaaS) rather than a "behind the firewall" approach.

  "On-Demand approaches nearly always accelerate spend under management as measured by the number of catalogs enabled, number of suppliers, overall percentage of spend capture, overall visibility into and ongoing reporting and analytics".

  Source: Spend Matters "SAP SRM 7.0 The Wait's Over But Is It Worth It ?"

• Use a portal front-end to give users easy access to:
  • A directory of the category taxonomy linked to...
  • Category cards (category specific guidelines for users)
  • e-Procurement system training materials
  • Help-desk contact details
• Category managers should prepare extensive catalogues for both goods and services prior to "go live" (Supplier enablement). Catalogues can equally be used for many services as they can for goods. The contribution of Category Managers to this initiative should be formally measured.
• In the absence of catalogues, category managers must provide detailed policy, procedures and guidelines regarding, preferred buying channels, approved / preferred suppliers, cost-codes etc. within the portal front-end in the form of "category cards".
• Set up an e-Procurement Help-desk (perhaps within an outsourced Procurement Operations Hub), to manage:
  • Master data
  • User queries & FAQs
  • Process Monitoring and Improvement

Note: as users become increasingly familiar with the system and user queries to the help-desk fall, the same resources can be used to provide supplemental low-cost category management support, for lower risk procurements, thereby delivering even higher levels of value.

• Select a user friendly taxonomy, so that users don't have search through "IT" sub-categories for guidance regarding e.g. "IT Project Managers", which should have been classified under "Professional Services".
• Use a formal communications process to support the change supported by dedicated comms resource.

• Introduce a sensible "No-PO No-Pay" policy which consistently follows go-live dates, to cement up-take of the e-Procurement platform.
• Formally measure and report the reduction of invoices without POs.
• Identify non-compliant users & budget holders by exception, and invest time personally, emphasising the importance of the change. If necessary make an example of individuals who persistently don't comply.

• SONY Europe - reference in full

More Information on Transformations & e-Procurement

• Procurement Transformation /Purchasing Transformations - All
• Features of e-Procurement Systems
• Benefits of e-Procurement Systems

© www .interim-management-purchasing.co.uk December 2012

Excerpt from the Procurement Director of SONY Europe's reference following their procurement / purchasing transformation programme spanning ~40 countries:

“...David’s inter-personal skills and style of management came to the fore, keeping the key stakeholders engaged and on board yet, delivering to the tight timescales. David brought to the team real professionalism with an incredible wealth of knowledge and expertise and a dedication and desire to get the job done, but importantly in the right way".

"Having worked with David for nine months, I would thoroughly recommend him for any Senior Procurement or Transformational role. His commitment, drive and energy, were a great addition to the team and I hope that I can work with him again in the future”.

Full SONY reference