Key factors for E-Procurement implementation

While e-procurement offers many quantifiable benefits, it still poses many issues that must be carefully considered before implementing a specific solution. Effectively addressing these issues will help ensure both a rapid and a complete implementation—one that will help your organization realize all the benefits of e-procurement, including a lower initial system investment and an increased return on your investment.

Consider these questions before you choose an e-procurement solution or provider, and consider how your answers will help you minimize the risks and maximize the rewards of your new system:

Is my organization ready for e-commerce?

Do you already have an e-commerce strategy? How will e-procurement integrate into that strategy? If you don’t have an e-commerce strategy in place, how can you build one that will support e-procurement as well as all future e-commerce activities?



How will I bring my suppliers on board?

E-procurement will change the buyer/seller relationship.

How will your current supplier relationships need to change to maximize the e-procurement solution? What strategies must be developed to build and maintain those relationships?

How will my current procurement processes need to change to maximize


Is your business model aligned with your system model? Where are the gaps and how can they be closed?

How can I create a scalable infrastructure that will support future growth?
Industry studies indicate that e-procurement is

poised for explosive growth. Factors driving this growth include the number of buyers and suppliers participating, increased


accessibility to authorized users throughout an organization, improvements in Internet e-commerce software, and organizational growth.

This translates into increased transaction volume that can easily overwhelm the capacity of an e-procurement system. Will your current infrastructure support e-procurement?

Is your hardware configuration scalable to support additional servers, processors, and an increase in transactional volume? Note that e-procurement software must be object-based to support the addition of custom or third party applications, as well as easy integration with your current back office systems, as the needs of your marketplace change.