For Sale: An unused E-Sourcing platform

 Have you bought a new car, but it just sits on your driveway all day, shining? Something similar is happening in the procurement department. They have the most optimal cars available in the form of an e-sourcing platform, but they don’t use it. In this blog, I will guide you through the various steps to prepare your procurement department for the next phase of digital procurement.

New car, but afraid to drive 

Why is the use of the e-sourcing platform lagging? It’s like having a new car on the driveway but continuing to use your old car because you don’t want to lose the familiar feeling.

We see the following causes:

• Knowledge in the field of e-sourcing is scarce in the market, and the turnover rate of people with the right knowledge is high.

• The capabilities of e-sourcing do not get enough attention during and after implementation.

• Procurement professionals often see preparing the system, including data setup, as a burden. They prefer to focus on short-term negotiations with suppliers.

The result? Objectives from the business case are not achieved. In the long term, this can even lead to a decline in competitive strength.

Benefits of using E-Sourcing

You don’t buy a new car without reason. They are often more energy-efficient, have the latest tools, or are simply more pleasant to use. Similarly, the e-sourcing platform in SAP Ariba was set up for a reason:

• You can conduct more procurement projects with e-sourcing.

• You increase your “addressable spend.”

• You shorten the lead time, allowing more negotiations with more suppliers simultaneously.

The road to success

• Data

Every platform needs data to function. For procurement, this means that data from Word and Excel RFQs must be converted for use in SAP Ariba. This is a time-consuming process where a good setup of templates is essential. Once this is in place, 80-90% of RFQs are already captured in the platform.

2. Procurement Business Support

In addition to (IT) technical support, business support and change management are crucial. This accelerates digital transformation, and users adopt the platform more quickly.

Procurement professionals can be relieved in the following areas:

• Sourcing events: setup & run

• RFQ template: creation & optimization

• Category manager/buyer: guidance & advice

• Contract management: creation & maintenance

• Supplier: training & support

3. Digital is the New Normal 

Clearly communicate to your procurement professionals. The use of the e-sourcing tool is the new normal. Management should clearly communicate the extent of the non-negotiability of the tool.

4. Ready for Generative AI 

To be prepared for AI developments, it is important to invest in e-sourcing now. The expectation is that AI will be able to deliver high-quality RFQs by 2026 (Gartner research). However, it is important that procurement professionals teach the “machines” the trade.

Drive it or sell it again?

Are you someone who wants to drive their new car immediately? For more information about the benefits of e-sourcing, you can contact David Verberne at david.verberne@mccoy-partners.com.