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Home » Blog » Procurement Technology » The Why, What & How of Strategic Sourcing: Part 3 – Hurdles in Achieving Smooth e-Sourcing

The Why, What & How of Strategic Sourcing: Part 3 – Hurdles in Achieving Smooth e-Sourcing

The Why, What & How of Strategic Sourcing Part 3
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Earlier we discussed the importance for having a structured eSourcing process and the factors driving this change. (Click here to read part 1 and part 2 of the series)

In this blog, we will talk about the common obstacles that procurement is likely to face while transforming the eSourcing process:

  • Lack of investment in a holistic change-management program to drive technology adoption.
  • Lack of sufficient training at the time of technology implementation leading to under utilization of the eSourcing technology and thus sourcing team is unable to extract the maximum that technology has to offer.
  • Gap in sourcing and business objectives leading to management overlooking sourcing team’s achievements.
  • Complicated user interface leading to executives opting out or circumventing the technology.
  • Supplier push-back preventing eSourcing technology roll-out.
  • Inability to carry out bid optimization for specific scenarios that the sourcing project may need. For instance, evaluating only those suppliers with whom the organization has worked before and are located in a particular region.
  • Unable to carry out high load sourcing events. For instance, a sourcing event involving 10000+ line items and 200+ suppliers.

To overcome these obstacles, procurement needs to evaluate its need thoroughly and identify vendors that can match up the expectation. Another factor that plays a big role is having management buy-in for upgrading or switching technology in the current sourcing process. Having a management buy-in is necessary for carrying out change management activities throughout the procurement department while shifting to new technology.

Stay with us as we discuss the benefits of sourcing automation in our next blog.

 

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