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Procurement Systems and Tools RoundTable Notes (Europe) 13 Oct 2020 - 0
Procurement Systems and Tools RoundTable Notes (Europe) 13 Oct 2020 - 0
Procurement Systems and Tools RoundTable Notes (Europe) 13 Oct 2020 - 0
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• The operational efficiency team that manages the roll-out of systems, and is linked with the
enterprise technology team and Procurement
• The contracts and negotiations team, which provides input during online negotiation events
• Procurement centres of excellence (COEs), which provide standard templates, training and guidance
regarding e-Sourcing systems and tools
• Subject matter experts (SMEs) that provide assistance with e-Sourcing activities, such as setting up
and conducting requests for proposals (RFPs) and negotiating with suppliers
• Global business services and outsourced business process outsourcing (BPO) centres, with
e-Sourcing system experts that provide tactical support for e-Sourcing activities
• Category managers supported by category specialists.
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• Sievo, a contract management and spend analytics tool, which can be slow and challenging to use
and extract data from
• Synertrade, a suite of e-Procurement software that uses chatbots within its sourcing tool
• Tealbook, for managing supplier data and intelligence
• Zycus, an end-to-end procurement solution.
System providers
The challenges of working with the system providers include:
• The large system providers and software companies being inflexible and unaccommodating
regarding the clients’ specific requirements
• The providers' companies expanding at a rate that can have a negative impact on the quality of their
products and services
• Being unable to implement or use a global system when they are unavailable in certain regions
• General technology-related errors, and implementation issues when the functionalities of the tools
have not been aligned with internal processes by the time the system goes live.
Selection criteria
E-Sourcing systems and tools are selected according to criteria that includes the:
• Size of the company, the volume of work it performs, and the data it generates
• Company’s culture, requirements and strategic objectives
• Company being in the process of transformation
• Maturity and structure of the procurement department and its position within the company
• Procurement category structure, the technical skills within Procurement, and the number of people
dedicated to performing the end-to-end procurement processes
• Existence of dedicated e-Sourcing teams or COEs to provide support with implementation, training,
adoption and utilisation
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• Services and support provided by the system suppliers
• Costs and fees involved
• System's customisation capabilities, user-interface quality, ease and speed of use, and required
level of complexity
• Decision to use a single system, or a suite with additional best-in-class solutions to address
functionality gaps
• Integration capabilities of the system with existing or potential systems
• System's data management and reporting capabilities
• System supplier’s strategy and the additional functionalities they are planning for the future.
The main issues and good practices when switching e-Sourcing software include:
• Considering the benefits and disadvantages of working directly with the system supplier during
implementation, rather than contracting an independent implementation partner
• Deciding whether new e-Sourcing software should be implemented in phases or all at once
• Modifying and adapting procurement processes to suit a new e-Sourcing system
• Ensuring that there is no negative impact on Procurement achieving its key performance indicators (KPIs)
and objectives during the implementation and adoption phases
• Using tracking tools to monitor adoption, utilisation and compliance.
Sources of information and assistance for comparing and selecting procurement systems and software that
are currently available in the market include:
• Forrester Wave
• Gartner Magic Quadrant
• Gartner Supply Chain Symposium
• The Hackett Group
• State of Flux.
Digital transformation and procurement technology are analysed in The Future of Procurement, a whitepaper
by Dr Elouise Epstein and Stephen Easton of A.T. Kearney.
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Sequence and timeframe
• The ideal timeframe for implementing an e-Sourcing system is within one year. However, the
implementation of a full P2P system as part of a large-scale digital transformation may take around two
years, depending on the size, complexity and location of the company.
• The implementation timeframe is much shorter if the users are enthusiastic about the change.
• It is important to take into account the requirements of the business and seasonality factors when
planning implementation, and to select the least busy time of the year. Defining the correct timing for
the system to go live requires collaboration with the stakeholders from other departments.
Change management
• The decision to implement new e-Sourcing systems and tools is often announced during regular
Procurement group meetings. The responsibility for managing the change is then delegated to the
appropriate procurement personnel, such as a procurement tools and processes manager.
• Effective change management involves communicating to the users and stakeholders across the
business the reasons for the new system and processes, and the benefits they are expected to deliver.
• The benefits that can be promoted include increased efficiency and cost savings, fulfilling specific
business requirements with an upgraded system, improving communications and data flows, and
contributing to the company achieving its business objectives.
• The communication channels that are used include emails, the company intranet, team meetings,
presentations during procurement and company meetings, and training events.
• Feedback channels should be provided to the stakeholders and users, as well as responses regarding
their issues and suggestions, and the actions that have been taken to improve the user experience.
• Applying agile methodology enables stakeholders to be actively involved in the implementation,
continually provide feedback and influence real-time modifications. This approach provides
Procurement with valuable information regarding different types of users, as well as their requirements
and purchasing practices.
• It is important to provide sufficient training as part of the change management process. This may
include training packages being provided through an internal learning platform, with modules covering
different topics and processes. The users may be required to complete the training before gaining
access to the system or tool.
• Super users and specialist users are beneficial for providing assistance and regular induction sessions
during the transition, as well as being points of contact for the users to obtain support and information,
and for ensuring consistency across the organisation.
• The super users may then be included in the ongoing governance team, to ensure that the systems,
tools and processes continue to be used correctly.
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• Ensuring that post-project surveys are conducted soon after e-Sourcing events, focused on the project
and the stakeholders’ experiences, and provide the opportunity for them to suggest improvements
• Using third-party survey tools such as Qualtrics
• Ensuring that the collection and processing of the survey responses do not conflict with the General
Data Protection Regulation (GDPR).
Adoption
• Targets for adoption and utilisation rates are often established for e-Sourcing; which needs to be with
discretion in companies that do not mandate the adoption of new tools and processes.
• To avoid the application of a mandate, adoption may be incorporated into procurement processes and
ways of working.
• When all procurement processes are performed through an e-Sourcing system, the adoption rates for
the various teams are clear and measurable.
• The age, country of origin and culture of the users often influence their willingness to adopt new technology.
• Adoption and utilisation are encouraged by:
o Obtaining a combination of top-down and bottom-up support
o Establishing champions within the business, particularly at the executive level
o Conducting robust stakeholder management
o Using positive case studies and success stories to demonstrate the value e-Sourcing technology
has delivered to the company
o Tracking all e-Sourcing events through procurement project pipeline and performance
management tools.
Discussion 5: Skills
The credibility of e-Sourcing programmes is increased when they are supported by specific e-Sourcing
teams or COEs that are comprised of people who:
• Are from relevant business functions, such as IT
• Have category experience and enthusiasm for using technological solutions
• Are familiar with the technology and functionality of the system that is being implemented
• Have received additional training from external consultants to enable them to optimise additional
functionalities and provide support to the stakeholders and users.
The skills that are needed within Procurement to support e-Sourcing include:
• Traditional procurement skills
• Category- and role-specific knowledge and experience
• E-Sourcing experience and expertise
• Project management and implementation capabilities
• Data management, manipulation and analytics skills
• Relationship development, stakeholder engagement and influencing skills.
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• AI and machine learning being applied to a range of procurement activities, such as:
o Requisitions automatically transitioning into requests for quotations (RFQs) that are issued to
specific preferred suppliers
o Voice recognition software being applied within the P2P process, with users giving vocal
commands and being guided by buying bots to the preferred suppliers for specific products
or services
o AI being used to analyse large amounts of data from areas where visibility is usually poor,
such as category-specific buying history, and providing procurement managers with beneficial
insights and opportunities
o Machine learning being used for reviewing previous transactions, developing game theory
models and offering suggestions for resolving particular issues
o Chatbots within sourcing tools monitoring category managers or buyers as they develop RFPs
and making suggestions related to each section as it is being completed, such as recommending
alternative suppliers from within the supplier list.
Improvements
• The system providers are expected to continuously develop and upgrade procurement systems and
tools. To benefit from these improvements, companies need to provide the suppliers with opportunities
to present new developments and explain how they can benefit the organisation. This involves
establishing two-way communication with the suppliers, to ensure that the company remains informed of
potential opportunities.
• The large suppliers of e-Sourcing technology hold annual events to present and demonstrate new
systems and tools, which enable clients to meet their project managers and software developers,
provide feedback and discuss features that may be beneficial.
Good Practices/Takeaways
Establishing an e-Sourcing COE to lead the transformation process and demonstrate the value and
effectiveness of Procurement's e-Sourcing initiatives; with a team dedicated to implementation and roll-out
working alongside the e-Sourcing COE.
Focusing on people and processes before adopting and implementing and e-Sourcing to ensure success.
Prioritising key processes and understanding where the most value can be achieved through digitalisation.
Developing thorough descriptions of each part of the procurement process to ensure that the right e-Sourcing
tools are sourced and applied.
Considering the ability of e-Sourcing systems and tools to integrate with other technology during the
selection process, as well as the amount of support the IT department is willing to provide.
Ensuring successful adoption through effective communication.
Developing KPIs for tracking adoption and utilisation rates.
Remaining up to date with new technology as it becomes available in the market.
Engaging with small and/or start-up technology companies that are attentive to their clients and keen to
expand their technological portfolios.
Notes from previous meetings and a schedule of future events can be accessed at the CASME Resource
Centre: www.casme.com.
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Important
These notes are a summary of the facilitated discussions held between the delegates at this meeting. We recommend that any
references, particularly to legislation, or recommendations contained in these notes are cross-checked by the reader in order to verify
their accuracy prior to being acted upon. Any third party organisations named in these meeting notes are not recommendations but
are examples of companies mentioned during the meeting that might be considered when tendering for appropriate goods or services.
These are not intended to form an exhaustive list and it is likely that other organisations not listed may also provide similar goods or
services.
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