Roadblock 3: Your eProcurement System Fails to Provide an Efficient Workflow

There are many different ways to conduct purchases in the business world today. One of the most effective types of conducting this business is through the use of an eProcurement system. eProcurement systems utilize electronic procurement for many common transactions between buyers and sellers. This particular type of business transaction utilizes the internet and other networking services. The purchase and sale of the services, supplies and work can be easily incorporated into an eProcurement system. Some of the procedures of the aforementioned supplier exchange are the business to consumer, business to government and the business to business. However, it is also possible for your eProcurement system to fail and be unable to provide a workflow that is both effective and efficient.

When a system is limited by the technology that it can interface with workflow is impeded. For example, a procurement system limited by using paper is highly restricted as to how the workflow takes place. Having technology in place to move procurement to an electronic format does not automatically mean optimum workflow. Some systems may be device-dependent; meaning the only way to access and interact is via desktop or laptop computers. Highly mobile executives who interact in all other areas of their business through the use of a mobile device may not be able to interface with the system. They will only have the opportunity to do their job once they are located in a fixed location with access to a desktop or laptop and internet access.

Workflow can fail if the system used fails to work. eProcurement systems are gaining wide acceptance in businesses of all sizes as more and more convert from older paper-based systems. Workflow should be automated as fully as possible in order to avoid rise to their full potential. In order for you to avoid failure in this area it is very important to ensure the capability to model all of the corporate policies of procurement and automate workflow. It is also very possible for you to manage all of the important details in different activities such as invoice approvals, purchase orders, invoices and even requisitions. Policy details may potentially include approval and spending hierarchies. Purchases may even include things most business never consider such dangerous and hazardous materials. Every business requires purchasing in some capacity; we’ve all heard the term “you have to spend money to make money.” Well every purchase can involve workflows that are tied to automated system to increase efficiency.

Ineffective eProcurement systems will not be able to do the procedure of tracking quantities that are specific for a particular material. This will depend on the time and location of the material and where your business is located. Having the business involved pay a premium to track and to monitor the materials manually would be the best-case scenario. On the flip-side of this situation, in the worst-case scenario there is a possibility that failing to monitor and to track such materials can be a threat to the public security and safety. In this event, the particular business has the potential to violate certain regulations and laws putting the entire business at risk of being shut down all due to an ineffective procurement system.

It is essential to have agility in all aspects of the business including the procurement system in order have effective and efficient workflow.