Standard e-procurement objections.

March 30th, 2011

One would think or at least hope that objections to the use of e-procurement tools would be much more sophisticated; but they’re not.

Most of the time when we present our solutions, the majority of objections come from buyers and category managers. This author has long held that this is not the correct audience for a first presentation to a company of any size. The correct audience is the CEO or CFO, or both. Procurement when looked at properly has the largest single impact on a company’s financial performance of any area of the company. CEO’s and CFO’s primary areas of focus are the financial performance of the company.

Here are the bullets I normally speak to at the beginning of a presentation as to what leaders will here from their teams relative to the use of these tools. All have very detailed rebuttals that cover the gamut of the procure to pay life cycle.

1. We already get the best cost
2. We’ve done business with this supplier for years
3. We don’t have product specifications
4. We don’t have time for this
5. Our switching costs will be to high
6. We can’t insure the same quality
7. We need to adhere to certain standards
    
Here are a couple of hints as to how to nip these objections in the bud. Get the CEO and CFO     involved early, and keep them involved throughout the process. If savings and cost avoidance are delivered as promised, you won’t have any problem keep their interest.

We look forward to and appreciate your interest.

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