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Decentralize out of control purchasing to now controlled centralized purchasing

"Bellwether has eliminated the paper in purchasing and allowed us go from decentralized out of control purchasing to centralized purchasing and invoice processing. This has reduced cost and provided us a clear picture of accruals."

Ben Belflower, Reporting & Analysis Manager, Aramark

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Roadblock 2: eProcurement Solution Fails to Funnel Prioritized Content

An eProcurement system is an electronic system that helps improve the transactions in the company, manage assets, decision making and optimized-production operations.  eProcurement advantages become more evident as it provides wide understanding for its numerous uses. One of the main reasons why most of the companies take advantage of eProcurement is to provide visibility and increase the productivity in their everyday transactions. This will make it easier for the customers to purchase the product or supplies they need.

The implementation of eProcurement system is not always easy because of the human component. It often takes more time forprocurement departments and business managers to totally accept the system. Despite of the numerous advantages promised by eProcurement systems, based on the research done by the Forrester, they found out that the resistance from suppliers and staff is usually the major obstacle to realize the full advantage of it. The suppliers and staff are considered to push back everything related to the process that enables the improvement of the company’s competitiveness. Sometimes the failure to full accept the solution is due to shortcomings in the software itself. What makes the procurement process inconvenient is the solution which is inadequate to do certain tasks and another is the solutions that unfortunately cannot easily adapt to the suppliers or buyers procurement universe.

In the eProcurement system it’s very important to consider the unwanted consequences. Some are saying that the system failed them. Purchasing is not as simple as placing an order for office supplies, books, clothing or any other stuff. Some industries have distinct and different purchasing requirements that make up numerous categories requiring purchasing managers to buy some items from multiple suppliers. Their purchases include complex services and items that may be preconfigured in a specific and unique fashion that meets their own specifications. Most companies have a preferred supplier of services and materials. It’s only natural to find a supplier you like, get to know and trust. A truly great eProcurement system must be able to acknowledge and recognize these preferences. The system will be able to perform by prioritizing the content according to the categories and preferred vendors that are relevant to the business. For some, they favor locally produced resources while others pay look at environmental impact and commitment to green initiatives.  

If the system cannot perform or prioritize contents according to the corporate aims, buyers will be left with two bad choices. Do they go outside of the system in order to make purchases that meet their goals or do they stay within the system and make purchases that fail to meet all the specifications the company has set forth. Neither is a good choice. That’s why it is so important for the eProcurement system to perform well, filter content and meet all the goals set by the company. This will surely make the customers stay within the system and find their preferred goods. Even if the eProcurement system can guarantee to direct the user to the specific goods and suppliers, still, it may fail if it will not guarantee the delivery of accurate content needed by the clients. The systems that fail to keep up with the policy of corporate procurement as well as catalog changes will definitely affect the company in a negative way. 

February 14, 2013
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BY Bellwether
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