One of the most common responses from procurement organizations, when asked about challenges in their procurement processes, is that even though they have implemented various ERP and Source-to-Pay solutions, they still aren’t moving away from being manual. After so many products being implemented in companies to help them automate the system, what is still stopping them from being fully automated and get rid of manual work?
Supplier Adoption is the one common answer we get from the majority. Even if companies implement the best available solutions for their processes, their biggest hurdle is the resistance of their suppliers to accept the new solution implemented.
Often, when a company implements a new solution for the first time, or moves to a better solution, their employees are well informed of this change and well equipped to move to the new solution. However, supplier change management hasn’t been given enough importance. Suppliers are often not the most tech-savvy people and their resistance to change is due to the fact that they are unable to see the benefits they would get from moving to a new system. Suppliers are not included in the change management process from the beginning; they are often forced to change after all the implementation has already been made.
This entire process of implementation fails because the biggest stakeholder, the supplier, isn’t ready to change and so, ultimately, companies still carry on with their manual process with respect to supplier management.
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