Do you think you understand the elements of an effective e-Procurement Program?

August 17th, 2012

There is more to an effective e-procurement program than simple cost reduction.

Critical components for the buyer include but certainly are not limited to the following:

1.   A comprehensive database that is developed maintained and continually updated by the e-procurement service provider.
2.   Scope and accuracy of information that goes well beyond that of a simple on-line directory.
     a. Global and local sources of supply
     b. Detailed Vendor Information (capabilities, financials, history, safety  and environment information)
     c. Historical procurement details
     d. Industry Alerts
3.   A sophisticated software application program that provides extensive functionality:
     a. Allows for quick and easy access to information.
     b. Provides detailed information based on the buyer’s defined parameters  and queries, similar to that found in the opening pages of a comprehensive RFI.
     c. Allows for the easy retrieval of information that includes a substantial number of records.
     d. Classifies the results according to the parameters defined
     e. Communicates the information clearly in an uncluttered format
     f. Directs the application to carry out the required e-procurement action steps.
     g. Results in a summary presentation to the buyer that provides the best price scenarios that maintain the required level of quality and service.
4.   Software alone is insufficient. Those responsible for purchasing/spending need training, guidance and support.

The above definition is a part of a document that was developed by one of our customers after they had used our tools and experienced our services in order to define the process to their investors.

If you’d like to learn more about how you can use these tools to reduce costs and much more, please contact a SafeSourcing customer services representative.

We look forward to and appreciate your comments.

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