Hannu Kilpeläinen
Product Marketing Manager

Understand the spend profile of each department

Ensuring success means understanding the spend profiles of each department; in other words, what they do, how they do it, the challenges they face, and how they work with others. If you can show them you have both an interest in and an understanding of their perspective, you can help them to see how your e-procurement plan will give them the tools they need to buy more wisely.

Spend profiles differ by industry. Manufacturers usually have raw materials and production goods as their largest spend. So their e-procurement plans normally focus on handling large purchasing volumes and inventory levels - instead of the end-user experience for those buying everything else the organization needs. On the other hand, service businesses see indirect procurement as their largest spend. Regardless of the industry, modern e-procurement plans help organizations cover the widest possible spectrum of spend profiles.

Launching a new e-procurement plan requires change management

Remember that launching a new e-procurement plan is fundamentally a change management exercise –this crucial insight is often overlooked in real life situations. Even quite sophisticated e-procurement programs often stop at simply knowing who the other stakeholders are. It doesn’t occur to them to reach out to these people, make the case for change, and collect input. Or if they do, this is a one-time event and the next thing these stakeholders see is the final system being rolled out.

You will be much better equipped to understand the needs of different stakeholders if you already have corporate-wide visibility into all spend categories, and key suppliers in each category. This makes it easier to truly prepare each division – plus some of their key suppliers – for the change.

Want to learn more about how you can ensure the success of your e-procurement project?

Read our how-to guide for making e-procurement work for your business: 7 Secrets for Successful e-Procurement ›