At Vroozi, we see a wide variety of approaches to purchasing and procurement – everything from a totally manual, paper-driven process to a very technical, software-heavy process. Today we wanted to take a look at some of the things that stand in the way of procurement success. Shaz shares some of his insights on what to avoid when starting out on the procurement journey.
What are some common stumbling blocks for companies new to procurement?
Of course, the right solution is key. Every company has to purchase in some way, so to say they are new to procurement, let’s say we are talking about some kind of procurement software solution. So how does that solution fit their custom needs? The classic downfall in procurement has been overly complicated procurement systems, weighed down with too much hardware and unbelievable implementation and training times.
That’s essentially how Vroozi came to be. I saw the headache that these “solutions” were causing and knew there was a better way – user-friendly software that mirrors the ease of consumer purchasing. Originally, mobile purchasing was not as widespread for consumers, but now it is everywhere. By bringing that simplicity and ease-of-use to businesses, we are really revolutionizing how easy business purchasing can and should be.
The Right Team
Then – first and foremost, do you have the right people in the right roles to manage the process? So a lot of times we have solutions that come in to a client’s ecosystem where they don’t have the right people matched up to the roles necessary to run the platform or to enforce different objectives. You see a lot of that happening.
There is also an educational aspect here of people not knowing what they are getting into. Who needs to be on board? Who needs to know how to use the system? Who should have access to different parts of the system or approvals?
Really, you can rarely outsource procurement in a company. Most software companies are not buying complex products and services to power their business. It’s mostly laptops, furniture, office suppliers. Most software companies are highly dependent on labor as a cost driver.
Different commodities go up and down within an hour, complex services that need to be procured, the measurement against those services. “Did this person actually do the job? Are we going to pay them for that service?” There’s a lot of complexities depending on the organization. Not staying on top of those complexities and doing the work upfront to say, we really need to stay on top of this can be a real detriment to the overall procurement success.
Ready to learn more about how to make your own procurement great, request a procurement demo or more information today.