Top eProcurement Professionals Objectives For The New Year
Top eProcurement Professionals Objectives For The New Year
Value realization through non-sourcing activities is a critical objective for eprocurement professionals.
Around 43% of eprocurement value arises from non-sourcing activities. These activities largely consist of Supplier Relationship Management, Contract Management and Spend Analysis.
Supplier Management can help companies have clearer visibility into supplier deliverable and offer benefits to remove hidden cost drivers, increase competitive advantage, induce charge-backs for non-conforming material, gain insight to better leverage the supply base, and streamline processes.
The survey results also revealed that 60.2 % of eprocurement professionals have admitted that a formal scoring methodology either does not exist or is extended and maintained only for a select few strategic suppliers.
A formal scoring methodology for suppliers helps the organization understand the strengths and weaknesses of their suppliers. Supplier performance management can help companies have clearer visibility into supplier deliverables. Scorecards can also help companies develop their suppliers and help them overcome their weaknesses. Organizations can leverage supplier management programs that will help in setting up key performance indicators, capture data inputs, set stakeholder surveys and manage supplier scorecards.
Benefit of using a Scoring Methodology for Supplier Performance Management:
Develop Strategic Relationships: Based on the scorecards, organizations may choose to benchmark suppliers with their peers in the industry, execute supplier development programs which can help the organization to improve supplier performance, product/service quality, reduce cost and attain higher value from the suppliers. eProcurement professionals can thus leverage and enhance strategic supplier relationships and also help reduce business risks.
