EProcurement Integration Challenges are everywhere
Despite challenges, eProcurement systems are gaining traction
eProcurement is a relatively new concept where an organization utilizes an automation tool to manage their corporate purchasing processes. Deployed correctly and eProcurement systems can deliver many benefits, including:
- Budget Process Streamlining
- Real-time Process Visibility
- Reduction of Maverick Spending
- More efficient practices resulting in better pricing
- End to end controls and process governance
- Cost and labor savings
eProcurement systems are becoming more widely adopted as many companies recognize the benefits experienced by deploying a modern system that can integrate several procurement processes. However, this new promising solution can sometimes be temperamental and requires a lot of planning if you want a successful implementation. Including:
- Online catalogs from approved vendors
- Internal ordering processes
- Electronic Request for Proposal (e-RFP) process
- Online auctions (e-auctions) to accumulate bids on providing goods and services for a specific project.
Some of the problems associated with eProcurement implementations are related to attempting to connect with incompatible platforms and outdated backend system. Also, many companies rely on multiple ERP systems deployed across their enterprise. Additionally, for an eProcurement system to have maximum effect for an enterprise, they will need to get their suppliers to participate as well. Some of the suppliers don’t have the sophistication or the resources to use the eProcurement systems consistently.
eProcurement Integration Challenges
1 Difficulties associating EProcurement software with existing and incompatible ERP/Procurement systems
Companies that have previously navigated the many eProcurement integration challenges have discovered the real power of cloud deployments, which allowed them to reduce both time and effort significantly. These web-based on-demand procurement services are maintained and hosted remotely—all the costs associated with necessary software upgrades along the way diminished. Yet, because not all eProcurement solutions address the ERP integration requirements, it is essential to include solutions that come with the standardized integration adapters. These adapters allow better and more efficient integration efficiency and make it feel like the ERP systems are being upgraded or updated.
2 Inability to support the overwhelming number of suppliers
Solutions that make it possible for you to connect all of your suppliers on a mass scale can allow your company to reach a new level of business efficiency and success. However, there’s a catch. You need to find a way of dealing with the immense number of suppliers waiting to be integrated successfully into your new eProcurement system.
One of the ways to overcome this problem is to leverage a business network through a centralized business “hub,” which connects all buyers and suppliers. In this sense, web portals can play a crucial role in overcoming some eProcurement Integration Challenges. An additional problem can be suppliers’ requirement for ongoing support and assistance in an international environment. That’s why many e-Procurement technology providers offer ongoing supplier support, followed by help on more than a dozen languages.
In an article recently posted from the International Journal of Economics and Financial Issues, the author states:
The technology barriers to suppliers include understanding and commitment to specialist software and the start-up fee required by the vendors that is usually beyond the financial capabilities of SMEs or that they do not want to commit to such a high-priced system
3 Complex and rigid user interface
As e-Procurement systems are being implemented and integrated, it is essential for corporate users that the available user interface (UI) is as much similar as possible to other business systems they are already using. Finally, special attention should be given for the so-called average users who don’t have the time or a desire to go through training each time they have to use the new system.