The internet has revolutionized procurement in the business world. With excellent Wi-fi connection and a mobile phone, managers can buy and sell goods or services. As many businesses are now embracing e-commerce, it is expected that the smart ones will be on the lookout for tips and tricks that will make them stand out.
Well, you are in luck. This post discusses eight e-procurement strategy tips that will give your e-business that cutting edge. Let’s dive in!
1. Evaluate And Document Your Current E-Procurement Strategy
Before you go on to change or tinker with your current e-procurement strategy, evaluate how well or poorly it has served you since it was implemented. To improve the process you already have in place, you must be sure of the parts where it has failed and needs improvements. To go about this correctly, document your business’ e-procurement process.
Everything, from the timeframe for different suppliers, to the payment methods and compliance check, should be put in black and white before you take the next step. The document will serve as a reference and direct you on what must be included or excluded in your new plan for an efficient and effective e-procurement strategy.
2. Do Your Research
Different suppliers have different conditions of business. To boost your e-commerce business, you should find vendors that have favorable terms and conditions and are available to supply you with the goods or services you need. So, do your homework in finding out the capability of your suppliers and vendors.
3. Prepare The Plan
Once you have where you are on paper and all the information about your suppliers, then, you should get a plan. Your business solicitation should include your clauses, terms and conditions, preferred state, and payment terms for procurement. Also, develop the strategy’s key performance indicators (KPI) to know if the plan was successful after implementing it.
Before going head-first with your plan, ensure that your business has enough resources to carry it out. The most influential factor here is the number of employees you have at your disposal.
Don’t overburden your IT personnel with a plan that will be overwhelming to execute. People tend to make mistakes when they have a lot to do.
4. Review The Plan
More often than not, you will find that your plan is great on paper and in line with the vision of your business. But is it feasible? Will it be beneficial to your e-commerce business? The goal is not to have a theoretical plan, but to have a working one.
Run your new strategy with trusted employees or members of your board. If they don’t buy your new idea, then think twice if this is the best way to go.
5. Know Your Stakeholders
Your reviewed e-procurement plan will cut across various departments. Hence, you will have a lot of stakeholders that will develop an interest in your strategy. They’ll also want to know how it will positively affect your business. Be aware of who these people are, as they will help you to realize your new plan.
Remember that knowing your stakeholders includes understanding their roles in your business and how they perform them.
6. Be Consistent and Patient with Your Newly-Implemented Plan
Rome was not built in a day, and your business wouldn’t boost itself magically in one day either. You have to give your plan time. Start-ups expect a roll-out immediately, but this hardly happens in the business world, even if the plan looks perfect on paper. Nevertheless, don’t relent on trying to make the plan work. Devote time and resources to it, but do not rush things.
A step at a time will be a better approach to take, and we recommend you implement the plan with a single department first.
7. Monitor the Performance Of The Strategy
It is not enough to have a working strategy. You must know how it affects your e-commerce business. Create a plan to see how well the strategy is fairing and whether it meets up with your KPIs. If it is not bringing the returns you expect, then you have to go back to review it or create a new plan. Your budget, volume discounts, and rebates are good criteria to base this judgment on.
8. Continue to Improve
Improvement is a factor that your business needs to stay up during hard times. To reap the benefits of your new e-procurement strategy, continue to work with your stakeholders. Listen to their requirements. They will help you achieve the goals of your newly-implemented procurement plan.
Every business is different and has its challenges to deal with. The secret to boosting your e-commerce business with an e-procurement plan is knowing your business needs and committing completely to its implementation. An excellent e-procurement strategy can save your business a lot of money.Samantha Wallace is a veteran tech writer and editor who has worked in several eCommerce companies. She has been covering technology online for over five years. She is the Content Advocate for Greenwingtechnology.com.