e-Procurement Software

When it comes to e-procurement, the proper concerns of supporting and enabling Procurement have been put to one side in the excitable chatter and discussion of the technology. The signal gets lost in the noise.  It’s like going to a showroom where the salesmen and their acolytes do not tell you how fit their cars are for your particular purpose but instead, squabble about which has the sharpest fins or shiniest chrome.

The more I look at the proposed acquisition of Ariba by SAP, the less sense it makes. SAP didn't need the functionality. They didn't need the brand. The Ariba shareholders will clearly be pleased to see this deal go through but what, I wonder, would an SAP sales guy be thinking and what would Ariba's competitors be making of it all?

The original vision was right. The cost of purchasing as well as the cost of purchases could be dramatically reduced by applying the new technology. And there was a road map – a detailed vision showing how to secure the savings. The costs weren’t even that high – especially in comparison to the potential savings - but in the excitement, we lost the map and now, the vision is lost.

Ask anyone who’s worked in more than one purchasing organization. When it comes to technology, they’re not normally what you would describe as model implementations. Supplier data all over the place, catalogues out of date, Heinz 57 varieties of purchasing system. Purchase to Pay processes are very rarely joined up and if purchase to pay really is the plumbing of your organization, you’d be drowning. But before you beat yourself up about your role in this chaos, ask yourself the question: Why is it that everything is always a mess?

When we wrote that e-procurement was getting interesting here we didn’t anticipate that it would be one of the most read Purchasing Insight articles of 2012. There is obviously an appetite amongst purchasing professionals for this topic and now there's a new report that you need to get your hands on.