Will my technology investment fetch a good RoI?
Now, this is a critical parameter and the same is ensured only if there is an organization-wide adoption and usage. Technology without adoption is just an intent, and this is a fear that many organisations face across industries and across geographies.
When it comes to technology platforms for procurement, adoption by all stakeholders, including your suppliers and coverage of all types of buys, is of prime importance and the major objective of your change management initiatives.
Our understanding and experience with customers suggest that many digital procurement platforms are well equipped to handle standard items adhering to standard processes and do offer great impacts in terms of cost, efficiency and governance. However, when it comes to project or service buys, the complex nature of the same endangers the reputation of the good existing platform as ineffective. The platforms are not able to handle the evolving BOQ based procurement (services and project buys) and adhere to the varied procurement policies & processes that a particular geography or organization offers. Hence, adoption and coverage take a hit. With the limited digitalization of procurement, the organisational impact of embracing a procurement technology is low.
In order to ensure higher and faster RoI from your procurement technology, ensure that your digital platform offers these impactful 10 features.
- Capture of Prices Till 5th Item Sub-level
- BOM-based project buys requiring prices till the 5th level item hierarchy should be captured by your platform. This price visibility at multiple levels enables effective negotiations and keeps a check on the budget
- Handling of 100s Of UMCs In 1 RFQ
- The platform should support 1000 line items in 1 RFQ if needed, facilitating proper evaluation of TurnKey & Non-TurnKey packages
- Effective bid templates for Cost & Quality Based Evaluations (QCBS)
- Project Buys being big-ticket buys, requires due diligence on both price & technical parameters. Configurable QCBS templates in a platform can facilitate system-driven evaluation of suppliers on both price and technical parameters
- SMART template building of any number and type
- Users should be able to easily build templates from the extensive RFQ library and also configure or customize the same, easily from the front-end. This ensures that you have templates for any type of buys and do not require a great “change-request” effort in the configuration of additional templates. With such functionalities, you will be able to handle any type of buys
- Easy facilitation of Item-Wise & Supplier-Wise Multi-Currency Bidding
- Project buys can have global RFQs with suppliers quoting in their preferred currencies. Platforms should facilitate multi-currency bidding not only at an RFQ level, but at an item level. This ensures appropriate evaluation of supply, erection & commissioning packages in a single RFQ
- Quoting Additional Items by Suppliers when the specification or scope is not certain
- Suppliers should be able to propose auxillary or additional items beyond the mentioned RFQ items. This collaborative buying feature helps save time and iterations, reducing project delays
- Rich & Dynamic Workflow Approvals
- Can you configure DoP based workflow approvals or create your own sequential, parallel or committee approval? Ensure that your platform helps you in doing the same, if needed. Adopt procurement platforms that comes with dynamic workflow configuration. This will help your organisation in adopting technology better based on your own rites and rituals of procurement
- Create RFQs with or without Item Codes or PRs
- As a logical exception, ensure that you can create RFQs in system without item code or PRs, if needed. This helps in procurement of under-finalization requirements, with or without budget allocation or for first-time buys. The same ensures faster procurement as procurement managers do not get delayed because of system checks which are logical but not always practical. The system should ensure code tagging at later stages and other features that helps in process compliance without the delay
- Track Budgets In your eProcurement platform
- Isn’t cost overrun in project buys a regular issue? How do we circumvent it? Platforms with in-built budget module, having “Work Breakdown Structure” (WBS), links, tracks, monitors and reports variances from budgetary costs on a line item / package / sub-package / project basis. This ensures procurement leaders to track and control project costs
- Discussion/Communication Rooms
- Your platform should help you in strengthening governance by augmenting transparency and make your organization have a fair image. Platforms should offer communication modules that helps all stakeholders interact on one common platform, wherein all data are stored and retrievable. This ensures strong audit compliances and transparency across stakeholders
With the above 10 functionalities and user-friendly features, organisations can buy any type of buys digitally interacting with all stakeholders on a single procurement platform. Thus with 100% coverage and easy adoption by all stakeholders, you will certainly get an attractive RoI, faster.