eProcurement & Procure-to-Pay Resources

The Changing Metrics of Modern eProcurement

Published February 14, 2018 at 10:11 AM
Jack Mulloy

In our last 2 posts, we discussed the evolution of eProcurement, learning from B2C and how eProcurement must adapt. This evolution means a change to the measurements that define the impact of procurement to the organization. 

Spend under management, cost savings, contract compliance, and supplier enablement are just some of the metrics procurement organizations use to measure their programs. While each of these metrics is important, the expansion of users of eProcurement beyond just the purchasing department creates the need for different measures. While the measurements are different, they have a direct impact on traditional procurement metrics.

Buying is no longer restricted to professional buyers reporting through the purchasing organization. Buyers are the cross-section of the company and their success at executing a purchase directly impacts both savings realization and operational improvements. Procurement needs to start measuring like a B2C website, gathering data around user behavior, adoption and satisfaction. Using B2C metrics to quantify the user's experience will deliver actionable insights on engagement. Some metrics include:

Behavior: Understanding how users in the organization buy can be critical to ensuring the eProcurement technology is providing the products they need. For example, how often are users “bouncing” from the site -- meaning they visited a single page and did not interact. A high bounce rate could mean that the user was confused from the start and likely switched to an off-contract method to buy.

Engagement: Managing the level of engagement of users can impact the amount of spend under management. If users are actively adopting the technology, purchasing is happening under contract. One way to measure adoption is through the number of pages visited on the eProcurement site. The higher the number of pages, the more engaged the user is and more likely they will use the platform to purchase. In addition, session duration, i.e. how much time is the user spending on the site can indicate engagement levels. Much like pages/session, the longer the duration, the more engaged the user is.

Satisfaction: Much like the B2C buyer, eProcurement users need a way to provide feedback on their shopping experience. Using a measure such as Net Promoter Score Tracking, i.e. asking a single question in order to determine overall satisfaction. The user may provide comments and user’s activity is tracked at time of submission in order to understand and improve the buying experience.

With these metrics in hand, procurement can gain a better understanding of their buying community and can adjust to drive higher levels of adoption, increasing on contract spending.

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