If a procurement system has reached the end of it’s time, organizations will see the red flags flying. The solution is stale, inflexible, and impersonal. While many organizations reach this point, they are comfortable with their old system and don’t explore what’s possible with a next-generation solution.
Recommended read >> How To Identify Next-generation eProcurement Software: 5 Features
Below, I’ve listed five red flags to watch for that can help determine the right time to start searching for a new Procure-to-Pay (P2P) solution.
1. Off-contract spend is high or catalog-based purchase order spend is low
If end-users within the enterprise are using other (non-preferred) channels to procure goods and services, it’s a sure sign that it’s time for a new P2P system. This could include spend from purchasing cards, expense reports, check requests, and phone or internet orders placed outside of the eProcurement solution.
If you find yourself asking why end-users are turning to other sources to make purchases, it likely comes down to one key factor: usability.
Next-generation solutions like BuyerQuest make it easy for users to quickly find, compare, and purchase across multiple suppliers in a single interface. Using the system is so easy and efficient that employees won’t need to rely on other channels to procure what they need.
2. The technology is no longer evolving
When an existing P2P solution becomes stale, the technology can’t support the ever-changing needs of administrators, end users, and even suppliers.
P2P vendors must continuously invest profits back into the platform for enhancements, upgrades, and continuous innovation. The agile, seamless technology of next-generation eProcurement solutions doesn’t require IT assistance because the system:
- Integrates quickly with ERP technologies and other legacy systems
- Exchanges data and documents with existing enterprise and supplier systems
- Embraces and improves existing business processes
- Allows for personalization of the buying experience to boost user adoption rates
3. The procurement department has a bad reputation
If the procurement department within your enterprise is viewed as more of a police force than a strategic business partner, it’s time to rethink your eProcurement solution. Employees don’t want to be monitored while shopping; they want to be empowered!
Next-generation solutions, like BuyerQuest, were created to ease the everyday pains of procurement departments. These challenges include a disjointed user experience, lack of flexibility, cumbersome workflows, and lack of behavioral intelligence. Instead, BuyerQuest can act as a vehicle to change perceptions of the procurement organization within your company.
4. Procurement and accounts payable teams aren’t aligned
If Procurement doesn’t set the table with well structured or catalog-based purchase orders, the resulting invoices will not be processed seamlessly (or touchless) by accounts payable (AP). Quite the opposite, unstructured purchase orders (or no purchase orders) result in invoices that cause grief for AP departments.
To improve communication (and morale) with suppliers, to achieve efficiencies within the Accounts Payable process, and to, ultimately, unlock supply chain finance opportunities, accounts payable and procurement need to be aligned.
5. The current solution isn’t mobile-friendly
Many first-generation P2P platforms were built as an extension of the legacy ERP system and don’t have modern mobile capabilities. As a result, making purchases through these eProcurement solutions is less painful on a desktop (vs. mobile).
Next-generation solutions are built with a mobile-first mentality to support the needs of on-the-go users. At BuyerQuest, we believe employees should have the power to purchase (and approve) goods or services whenever and wherever they want. In fact, 50% of all BuyerQuest user activity is mobile.
Convinced you might be in the market for a new eProcurement solution? Contact one of our P2P experts to learn more.