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Selection of Procurement Platforms
When asking ChatGPT about the importance of procurement platforms, a long list of key benefits are being named, such as streamlined processes, enhanced efficiency and optimized purchasing activities. However, what ChatGPT is unable to address is the difficulty in selecting the right procurement platform that fits your organization’s needs.
Yanick Mandl
There are many factors why choosing the right procurement platform causes such a headache for many sourcing professionals out there. First of all, the sheer number of potential software solutions is quite overwhelming. From “Full S2P Suites” to “Best of Breed Solutions” specifically for the selection process, there are so many tools available that span a multitude of categories in terms of functionalities. Comparing these providers, even with available help out there, is difficult to say the least. In addition, there is no “one size fits all” approach as tools need to be fully integrated and aligned with the organization’s processes.
But let’s take one step backwards and ask ourselves the question: In which cases does a sourcing platform need to be evaluated and selected in the first place?
- A firm still uses traditional, manual approaches and is looking to transform their procurement processes by purchasing a new procurement platform.
- A firm is already using an existing procurement platform but is unhappy about the current state and looking to replace the tool with a new procurement platform.
- A firm is already using an existing procurement platform, which is coming to the end of its contractual lifecycle, and would therefore like to evaluate the market.
Regardless of the rationale behind the search for a procurement platform, the evaluation process should follow a structured RFP approach, which ideally includes Proof of Concepts (PoC) or even trial periods, and must involve all key stakeholders in the process. Only then can you make informed decisions about the procurement platform that best suits your organization's needs and objectives.
Luckily, MMG has the experience, structured approach and tools for evaluating and selecting the right procurement platform. The tried and tested evaluation approach starts with the gathering of requirements, followed by a provider pre-selection process to narrow down the short-listed suppliers. The tender process includes a PoC to fully evaluate the provider’s capabilities before actually selecting a supplier that can deliver what was promised in the evaluation process.
But what’s that tool that you have mentioned you might ask? Well, sit tight and stay tuned for more updates in the coming weeks!
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