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Project Management
eProcurement Success!
7/1/2008
Making the move from traditional procurement processes to a sleek eProcurement setup is all about project strategy.
TODAY, IT'S CLEAR to almost every campus executive that
moving an institution from the traditional purchasing model to
a strategic eProcurement program can greatly increase staff
efficiency and save the institution money. Because eProcurement
automates so many purchasing processes, it eliminates
reams of paperwork and allows procurement staff to
refocus their efforts on cutting costs and improving strategic
partnerships. The move to automation alone can save institutions
hundreds of man-hours every year.
Still, the process of making the move to eProcurement is a project that represents a significant investment in planning, training, and execution. The success of an eProcurement program ultimately hinges on buy-in from around the campus (and from all of the university's suppliers), to ensure a smooth transition, ongoing training and education, and most importantly, cost savings to the institution.
Create Stakeholder/Supplier Strategies
To get that all-important buy-in, first it is important to help senior administrators and other key institution stakeholders understand the value of eProcurement: lower costs through leveraging institutional scale, and simple, accurate reporting mechanisms to demonstrate success against institutional and state mandates. Procurement officers also should utilize data reporting tools to support eProcurement and demonstrate institutional cost savings of the program to stakeholders. Right behind that, procurement officers need to develop one-, three-, and five-year purchasing goals for the institution-- especially plans for ensuring return on investment (ROI) and supporting the staffing needs for the program. Every institution has short- and long-term goals that guide its leadership through planning and executing key initiatives; embarking on an eProcurement program is no different.
Finally, procurement officers must develop a supplier strategy. It is not necessary to include every single vendor in the initial rollout; rather, focus first on the institution's most-used vendors. Engaging a few key vendors first enables you to leverage your relationships with them to ensure a smooth transition to eProcurement. What's more, eProcurement systems can be structured to limit purchasing options and to provide speedy access to preapproved product bundles, resulting in better technology standardization across the institution. Also, consider how your vendor partners can contribute to those very important eProcurement reports by providing the institution with additional data and insight into spending trends.
Develop End-User Strategy
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