In today’s business world, there is a gap between actualizing an effective purchasing automation system, and those that fall short of their great expectations. So how do you ensure that your business doesn’t fall into the latter category? How do you keep your procurement plans from becoming delusions of grandeur? Spendmatters.com recently posted six insider tips that may help shed some light on how to ensure a successful implementation of your company’s purchasing automation system.
Amongst some of the more self-explanatory tips (like #1: Begin with the end in mind, and #6: Stick with it), the second and forth tips peeked my attention. #2 read: “Don’t be afraid of a little discomfort.” This is an important tip, as a functional procurement system may initially seem like it’s drawing attention to all the ugly parts of a company’s spending habits; singling out all the mistakes or shortcomings of coworkers. But that just mean that the system is doing its job correctly. It is supposed to point out all the flaws and misgivings of your company’s current purchasing processes, and in order to clean out the cobwebs, it must first bring them to light.
This works in accordance with the next one I found most interesting. #4 stated: “Use the system as a way to strengthen purchasing relationships.” Further in the explanation, the post read: “Standardizing purchasing via automation is not about good guys vs. bad guys. It’s about gaining visibility into the company’s buying activities to produce a more intelligent and profitable supply chain for everyone.” I think this is an important concept to keep in mind while considering the content of #2 – that at the end of the day you are all on the same side. Procurement isn’t just about cutting cost, ie – getting the cheapest items when sacrificing quality. It’s about optimizing purchasing, so both the purchasing department and those utilizing what was purchased are satisfied. For the rest of the list, click here.