5 Factors to Consider for Procurement Success
Procurement software can change the way you do business. It is a step in the direction of automation and technological advancement, and the functions it provides can streamline the way your business conducts purchases and acquisitions.
Procurement software bring many advantages to the table. Businesses who choose to go down this route can streamline business practices and gain an edge over their competitors. Here are some benefits as listed by experts at the SMART by GEP Procurement Software page–
· Increased Savings
· Improved productivity
· Keeping Pace (with technology)
It is difficult, for companies that are making a foray in this direction, to pick the appropriate procurement software provider to help put this technology in place. Here are key factors you should take into consideration when choosing procurement software or enterprise resource planning (ERP) programs for your firm.
Top five factors to consider when shopping for procurement software
1. Cost — The financial implications of procurement software is an important factor in its purchase. The options available at rates that are too good to be true usually tend to live up only to the billing. Either they do not provide the features and functions they promise to, or require additional payments to function fully. Clarifying the pricing structure is an imperative first step.
· Is the software available for a one-time payment, or annual payments?
· Is the cost dependent on the number of feature present?
· Are installation and training costs included?
· Do the costs vary depending on how many users have access to the software?
All these questions should be answered clearly before you take the plunge.
2. Features — A detailed explanation of the features and how they function is imperative. For example, updated statistics on spending, and cost analysis are important features that any competent enterprise resource planning system should have. As a business, you need to ensure that you are getting all that you want out of this software before you commit to its purchase.
3. Support system — A software is only as good as the support system it has in place. If you purchase the software but do not receive any technical support, you could end up spending a lot upfront and then find that you can’t use the software because of a bug or a glitch that no one is available to fix. This coupled with other factors such as training, troubleshooting and updates are important attributes of the support that the software development firm needs to provide.
4. Customization — Not all businesses are the same and the functionalities, processes and infrastructure of each business is unique too. In an intensive process like a procurement software, a “one size fits all” approach is not usually successful. Individual businesses require software that is tailor-made to fit their needs and infrastructural setup. For example, compatibility with Windows OS would be useless if the company operates solely on Apple iMacs.
In the same vein, if a majority of the employees use Android devices in a company that uses Bring Your Own Device programs, then an Android compatible companion app is a must.
5. Scalability — Businesses are not expected to stagnate and stand still, but to continue growing, developing and expanding over time. This expectation of growth and prosperity should be reflected in your procurement software as well. The developer should lay the ground work for future development within the software, and capabilities for the software to accommodate increasing orders and transactions as the business grows.
Like any other asset, procurement software can have varying levels of competences and functions based on how it is developed. Ensure that all these factors are present in any procurement software you are considering to make sure that you get the most value out of your investment.
Kim is an expert in the procurement industry with nearly a decade of experience helping clients navigate the complex world of innovative project delivery and procurement. His prime focus is on extending technology leadership and new market growth opportunities for enterprises.