Procurement is a little like Cinderella when it comes to small and medium-sized enterprises (SMEs), often neglected and overshadowed, its positive qualities hidden away, called upon only to perform basic chores.
It amazes me that, despite the money and risks involved in acquiring goods and services, buyers and sellers are often overlooked as to the value they can bring to the party. People only seem to notice when something goes wrong – a delivery is late, goods are poor quality or the service is weak. However, given the chance to shine, procurement can positively affect a company’s bottom line while helping to grow the business.
It amazes me that, despite the money and risks involved in acquiring goods and services, buyers and sellers are often overlooked as to the value they can bring to the party. People only seem to notice when something goes wrong – a delivery is late, goods are poor quality or the service is weak. However, given the chance to shine, procurement can positively affect a company’s bottom line while helping to grow the business.
To put this into context, for a business to be profitable it needs to generate sales while managing quality, delivery and cost. This is why companies invest heavily in enterprise resource management (ERM) software – tools that help departments gain oversight and work more efficiently to generate money. As companies compete for work, they need the best tools at their disposal, with the fastest processes and the richest features.
Holding others in the limelight is valid to a certain extent. But being able to lower costs, manage risk and add value through effective and efficient procurement means that companies can raise profits directly, and herein lies one of procurement’s underappreciated beauties.
Paper, spreadsheets and email-based procurement processes are today outdated and inefficient, but:
Selling the benefits of e-sourcing tools will change the perception of procurement– even if, as with Cinderella, it might take a lot of hard work. However, in today’s era of economic uncertainty and rapid technology transformation, it’s only a matter of time before companies take on the role of Prince Charming and seek out the foot that fits the glass slipper. And then maybe they and procurement will live happily ever after.
Need guidance on sourcing and e-sourcing tools?
If you're still looking for guidance on how sourcing and e-sourcing tools can help your company watch our “SME Sourcing Strategy of 21st Century Video Series”.
Holding others in the limelight is valid to a certain extent. But being able to lower costs, manage risk and add value through effective and efficient procurement means that companies can raise profits directly, and herein lies one of procurement’s underappreciated beauties.
Paper, spreadsheets and email-based procurement processes are today outdated and inefficient, but:
- Users are reluctant to give up functional – albeit archaic – processes.
- Companies waste time and money on implementing non-user-friendly e-procurement systems that don’t provide the big picture needed in order to be able to choose the right supplier and to save money.
Selling the benefits of e-sourcing tools will change the perception of procurement– even if, as with Cinderella, it might take a lot of hard work. However, in today’s era of economic uncertainty and rapid technology transformation, it’s only a matter of time before companies take on the role of Prince Charming and seek out the foot that fits the glass slipper. And then maybe they and procurement will live happily ever after.
Need guidance on sourcing and e-sourcing tools?
If you're still looking for guidance on how sourcing and e-sourcing tools can help your company watch our “SME Sourcing Strategy of 21st Century Video Series”.
