e-Procurement: From Strategy to Implementation

Step Four: Understand the Procurement Business Case

Having already learned a little about e-procurement, it is helpful to have the executive team examine the procurement process end-to-end. For many executives—even in manufacturing—this may be the first time they have had the opportunity to discuss or understand efficiency and workflow problems; compliance issues; transaction costs; failures to adequately exert leverage; the amount of time spent by purchasing personnel in administrative, low-value work; strategic sourcing policies; and other issues. Typical questions might be

• What are the general purchasing rules?

• Are they consistent or do they vary widely between departments?

• Are they understood and adhered to by everyone?

Chances are, the answers ...