Trends in Implementing Procurement Technologies: A Study

By CIOReview | Tuesday, April 21, 2015

PRINCETON, NJ: Zycus, provider of source-to-pay procurement solutions, together with Michigan State University (MSU), recently released a comprehensive research study titled ‘The Drivers and Barriers to Effective User Adoption of Procurement Technologies.’

The two-phased industry study authored by Dr. Tobias Schoenherr, Associate Professor of Supply Chain Management at Michigan State University included over 140 responses from procurement practitioners and experts in the field. The study finds that majority of the procurement professionals believe enabling procurement technologies are advantageous for business. They say that these technologies facilitate improvements in personal performance, productivity and effectiveness on the job and the motivating factor for the implementation of the technologies was identified as better internal integration and visibility.

The study puts most popular EPTs to be those used for expenditure analysis, financial savings management, and contract management. It also uncovers that once an EPT has been implemented, additional adoption challenges can emerge. These include the fact that the full capabilities of the system are often not realized by users, specific reporting functionality is not always offered, high supplier interface costs and data validity issues.

Companies are addressing these challenges by implementing both formal and informal training sessions, actively promoting success stories and demonstrating the specific benefits of these systems.

The study also identified the biggest challenges in EPT deploying like, staff preferences for legacy systems, issues in change management, the demand for a user-friendly environment, a lack of time permitted to learn the new system, perceived loss of control, and technology being seen as an expense rather than an investment.