I am sure you will agree, the procurement world is very complex, especially when it is no longer about, just saving costs when purchasing goods and services. To negotiate the best rates, software applications need to be implemented along with good procurement processes. Nowadays, procurement systems and processes look to add value into the overall corporate strategy and vision.
This article details 5 steps that I have implemented to implement procurement systems successfully.
Step 1: Procurement Strategy:
As the world of procurement is changing rapidly, it is important that the procurement strategy also has the vision and capabilities to evolve. It must take into account organisation change, processes and technology along with ensuring it fulfils the corporate goals set by the organisation.
Step 2: Procurement Roadmap:
The procurement roadmap step should look at the importance of various aspects within procurement. It generally starts with the strategic elements, whereby suppliers are enabled via the source to award process, then consideration should be given on how the supplier should be operationally procured using the purchase to receipt processes and finally how suppliers are paid via the invoice processing element.
The procurement roadmap is an integral part of procurement and can shape the success of procurement systems because it starts with the evaluation of vendors that could be awarded a contract based on a requirement and ends with the supplier eventually getting payment for goods and services performed / delivered.
Step 3: Project Strategies:
There are a number of processes that take place within this step. Before a project is started, a PID is created which involves a business case and various evaluations completed.
What problem are you trying to resolve? What type of return on investment (ROI) do you expect? What does the project delivery look like in terms of resource, communication and timeframes?
These are typical questions that need answering and, also, does the project strategy complement the corporate goals of the organisation? There are examples of various resourcing models for small and large projects. The detail for this can be found in my new book "How to Implement a Successful Procurement System".
Step 4: Project Life Cycle:
When it comes to delivery of procurement projects, the life cycle is very important. Clearly defined practices on how to rapidly implement processes without risking project delivery is very important to the success.
The solution design phase should be managed and appropriate resources assigned to ensure that all areas of procurement are identified and requirements gathered accurately. Some projects I have implemented were not as successful as others because the requirements were not very clear and if they were clear, they kept changing and the delivered solution did not satisfy the customer expectations.
Step 5: Change Management:
The final piece of the jigsaw is the change management aspects when implementing processes and systems. Regardless of the other 4 steps, if people, process and technology is not understood and managed efficiently, your project could be deemed a failure.
Culture, style and presentation methods should be evaluated before delivering any communication pieces to the organisation. I have often observed email communication being sent to all users because it is easy, fast and efficient, but it is not always (and in some organisations this is banned) effective if the culture of the business is to delete it or misunderstand it. Newsletters, intranet pages, roadshows, super user involvement could be more effective to deliver the message.
My book called “How to Implement a Successful Procurement System” explains the above 5 steps in great detail. This can help reduce the failure of implementing procurement processes and systems. It looks in detail at People, Process, Technology along with 10 tips to help organisations understand achieve a successful implementation.
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Your feedback on this article is welcome. There are so many reasons why the implementation of procurement systems can be a success or can be unsuccessful. Do you know what good looks like? If you would like to share ideas, please get in contact with me.