How to Choose the Best eProcurement Solution

With technology at the center of practically everything we do, eProcurement solutions will play a critical role in moving the industry forward. 85% of all procurement organizations believe that digital transformation will fundamentally change the way they deliver services. But, only 32% of procurement organizations have implemented a digital strategy.

So, why do most CPOs believe they should have a digital procurement strategy but not actually have one? Price, complexity, and lack of resources may be among the top three reasons.

The fact of the matter is that CPOs cannot afford not to move toward digital procurement. eProcurement presents too large an opportunity for companies to better manage costs, reduce cycle times, and create better transparency and efficiencies. So, whether you’re in a current procurement outsourcing relationship or just beginning to consider one, there is a right way and a wrong way to decide on who’s the best fit.

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Here’s a list of the most important vendor attributes for comparing providers to ensure you select one right eProcurement solution for you.

Industry Recognition

Industry recognition often equals expertise. Choose a partner that has been continually recognized by unbiased industry sources for its excellence. In the world of procurement, Gartner, Spend Matters, Forrester, Paystream and IDC are all trusted analysts who publish competitive analysis reports and blog on the leaders who are driving superior value through digital procurement.

Financial Stability

Research whether the company is financially secure. Is your digital procurement partner growing? Short contract terms could be a red flag that they don’t have sufficient working capital and are financially unstable.

Vertical Alignment

Procurement is different in every industry. Therefore, it’s critical that your digital procurement partner has experience with your particular challenges. Your provider should speak your language and have solutions that translate into tangible ROI for your business.

Forward Thinking

Find out which companies are investing money and resources into R&D roadmaps. Leaders are regularly publishing innovative content focused on industry trends, future technologies, and business forecasts that are impacting procurement.

Results-Oriented Solutions

The digital procurement provider should stand by their services and solutions to meet your specific business objectives and goals. Digital procurement is more than a technology platform. Your partner should provide you with a strategy to achieve your specific KPIs through technology and process improvements.

Full Suite of Products

Look beyond what you need today and plan for future expansion. Work with a procurement provider who offers a comprehensive suite of products for both indirect and direct procurement. Also, work with only those companies that deliver a top-tier supplier network and enablement capabilities.

Final Words

Proper selection of the right eProcurement solution will significantly augment your department’s strategy and operations. Use the selection criteria outlined here as a guide to lead you down a clear path to success.