Steps to Successful E-Procurement
February 1, 2011
Top-performing organizations today continue to transform procurement by identifying new ways to manage their e-procurement options, according to a recent Aberdeen Group study. Successful technology management has enabled procurement departments to meet or even exceed established business targets by increasing spend and capturing savings generated through the breakthroughs it provides, according to recent findings from Aberdeen Group. Drawing on the responses of more than 150 procurement professionals, Aberdeen's Effective eProcurement: Assessing Options for the New "Economic Normal"
- Days to on-board a new goods supplier of goods (2.4 days for top performers; 13 days for industry average);
- Days to on-board a new services supplier (3.2 days for top performers; 12.6 days for industry average); and
- Percentage of purchase orders compliant with existing contracts (86 percent for top performers; 51 percent for industry average).
- They are 33 percent more likely than competitors to have consolidated procurement systems under one platform;
- They are 23 percent more likely to have the ability to track compliance with existing, signed contracts based on available electronic catalogues; and
- They are 22 percent more likely than others to have workflow enabled for anywhere-access using remote devices such as smart phones.
- Establish an ongoing communication plan for change management;
- Improve spend compliance using contract management;
- Tie together master data and improve data quality;
- Implement online dashboards for monitoring spend metrics/procurement performance; and
- Outsource select technology components for managing e-procurement.
- Establish workflow on mobile devices in e-procurement systems. Leveraging more advanced functionality of e-procurement systems for workflow using mobile devices and smart phones increases access to users on the go. Moreover, given their increasing popularity in business, mobile devices also provide the opportunity to enhance the cost-efficiency of complex workflows by shortening the execution time. Best-in-class companies are 21 percent more likely than the industry average to have workflow enabled for anywhere-access using remote devices such as smart phones.
- Improve spend compliance with contract management. Contract compliance is a differentiating technology that assists in identifying the most important supplier relationships based on usage of customer catalogues. Best-in-class firms are 23 percent more likely than all other respondents to have the ability to track compliance with existing, signed contracts based on available electronic catalogues. Aberdeen found that 73 percent of top performers have enabled a contract management solution, compared with 45 percent for the industry average.
- Improve online dashboards for monitoring spend metrics/procurement performance. Firms that have instituted more tools to assist in the visibility of their spend through dashboards may have an advantage in identifying developments and look to this information more frequently. For example, those using online dashboards for monitoring spend metrics/performance rely more on analysis reports for on-boarding suppliers than those that do not. Best-in-class organizations are 11 percent more likely than the industry average to use dashboards.