Pros and Cons of a Piecemeal eProcurement System

More and more companies are implementing eProcurement software solutions in order to make their procurement processes more efficient and less costly. But because those systems can require significant up-front investments of money and time, some companies choose to use only the pieces they need at that particular moment. This partial eProcurement option has both advantages and disadvantages, and it’s worth exploring both so you can assess whether this is the right direction for you.

Advantages

  • Suits Your Needs: Not every company needs every feature of the eProcurement software suite! As a result, it might make more sense to pick and choose the features that make sense for your business. Similarly, if you have a specific short-term goal to achieve or requirement to fulfill, there’s no need to implement unrelated features.
  • Doesn’t Disrupt Operations As Much: eProcurement is a big change – it takes time to install the new system, and to train the employees who will use it. That will likely mean significant interruptions in your current operations.
  • Costs Less: Most eProcurement systems allow you to pay for features a la carte. If you don’t need all the features, you don’t need to pay for them – just the ones you want.

Dis-advantages

  • Doesn’t let you plan long-term: Implementing only part of an eProcurement system doesn’t let you take advantage of long-term strategic planning options. It may help you with basic operations, but can leave out major technical or organizational elements that can transform your procurement cycle over time. The full suite allows you to think strategically about every element in the long run.
  • Doesn’t Make All Departments More Efficient: Basic eProcurement software can enhance the efficiency of one part of your business. But without ERP integration, some departments won’t get the same efficiency boost. Among other factors, ERP integration automatically imports data rather than forcing employees to enter it manually.
  • Leaves Out Some Stakeholders: Without a complete eProcurement system, some individuals involved in the cycle may not be able to see everything that’s happening. Larger companies in particular would do well to avoid partial solutions, given how important it is for so many different people to follow the complex procurement process.

eProcurement software is transforming the industry, helping companies to save money and time. As you can see, however, there are many ways to use the features of that software. It’s important to choose the solution that best fits your company, based on its individual needs, size, and place in the market. Keep the above considerations in mind when weighing which option is right for you.

David Millington

David Millington M.Sc.QSM, NPDP, CL6σBB, SPP, SPSM3®, CM® Director of Education (Next Level Purchasing Association) A Certified Strategic Planning Professional, David Millington brings over 18+ years experience in the Strategy Execution, Product / Service Development, Organizational and Supply Chain Excellence Arenas. He is a Certified Supply Chain Professional, Certified New Product Development Professional, Certified Strategic Planning Professional, and a Certified Lean Six Sigma Black Belt. David holds a master’s degree in Quality Systems Management, from The National Graduate School of Quality Management, Falmouth MA, USA. This equips him with mastery of vast bodies of knowledge and best practices. David Millington brings hands-on experience at VP, Director, and Manager Levels, guiding and facilitating the development of strategic and tactical solutions to intricate organizational, product, and service challenges.

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