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E-procurement is mainly for Fortune 500-sized firms and high-tech "early adopters."
It would take a lot of work to get ready for e-procurement and you don't have the time or talent available.
The last thing you need is another never-ending IT project.
E-procurement is more expensive than it's worth and, in this economy, your mandate is to cut costs.
There's no harm in delay, as products will get better and costs will come down over time.

These are not just myths about e-procurement — they are myths about running a business competitively. Improving competitiveness
is the best reason to adopt
e
-procurement. Stop waiting.

 

e-Procurement Migration

The purchasing function is one of the last greatly unmanaged areas of expense. With e-procurement, purchasing professionals can jettison all the paperwork and do their jobs more strategically and competitively. The sizeable benefits of streamlining and automating the purchasing function are:

  • Reducing the cost of what you buy, and
  • Reducing the cost of the procurement mechanism and/or the purchasing department that buys it for you.

If you think it makes sense to delay e-procurement, think again. But automating inefficient processes does not make them more efficient — it just speeds them up. E-procurement won't help your organization buy the "right" products. It won't cure "rogue" purchasing. Purchasing electronically from suppliers who already charge too much will never help you reduce your costs.

Nonetheless, delaying e-procurement until your business processes are straightened out or until "things settle down" may be unwise. Improving competitiveness is the best reason to adopt e-procurement. Only your competitors stand to benefit from your delay.

If you find yourself saying: "E-procurement is a great idea – but we'd be crazy to automate this mess!" you're not alone. Paperwork has always been the Achilles heel of the purchasing function.

If this is your reason for waiting to adopt e-procurement, ValueNet will assess your existing purchasing processes, the products you buy, the suppliers you buy from, the prices you pay, your contract terms, and your payment processes and financial reporting requirements. We will recommend improvements that are guaranteed to lower your current costs and get you ready to migrate to an e-procurement platform. If we cannot reduce your current costs and produce documented savings, then there is no fee.

Otherwise, our fee is paid out of the savings, so the balance of your savings can be applied to your e-procurement start-up costs. The result? — The fastest possible migration to e-procurement at the lowest possible cost.

 
 


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