Leadership   Supply Chain   Lean Processes   Negotiations  

  

e-Procurement

E-procurement solutions  will have to implement by most companies  in the near future.  To get the most out of the technology, put emphasis on training and re-designing processes embraced by the people who use it.  We can help identify the right balance.  Technology is useful only to the extent staff are "capable of" and "want to" use the technology.  It is better to spend more on training and less on technology.  But don't be left behind!

 

Importance of e-procurement

►Purchases are 40% of sales and growing

►CEO mandates ruthless cost reductions

►Web-based technologies reduce time-to-source

►It focuses personnel on high value activities

►Proven ROI (10x in e-sourcing)

  

SMS can help by

►Identifying the right balance:

          + between technology and training

          + between needs and solutions

►Providing guidance and training in adjusting processes to:

          + maximize benefits of the new e-procurement tools

          + minimizing the impact to people within the process

►Assisting with supplier deployment of the technology

The chart below illustrates how companies use e-procurement and process change

to re-focus daily activities for more effective use of time and effort

Source:  AMR

 

Benefits

  • Buyers manage suppliers instead of exceptions (such as shortages and quality issues)

  • Deliveries are managed by suppliers and approved by purchasing Supply Managers

  • Suppliers play a greater role in issuing releases (or orders) and insuring timely delivery of quality materials

  • Dramatic reductions in supply cycle times

  • Early identification of capacity constraints throughout the entire supply chain

But... a successful e-procurement solution requires

  • Development of a new "desired" process with people who understand supply management

  • Strong commitment by the users

  • Training for supply manager, buyers, planners, suppliers and many others

And use the opportunity to "lean out" your supply processes

SMS helps with design of the new process, while developing a strong commitment through training and participation.  Our knowledge and experience can help successfully deploy your new e-procurement application:

 

Call (978) 549-7884 or email info@imaginesms.com