Supplier Adoption
Supplier Adoption is the process of overcoming buyers’ and suppliers’ barriers and objections to implementing eProcurement. As eProcurement and eInvoicing processes are adopted, the tangible benefits become more apparent to suppliers, and so the number of eProcurement objections is reduced.
Barriers for Supplier Adoption for both buyers and suppliers include fear of the unknown, the reliance on technology, and the security implications of trading using the internet. A common buyer specific barrier to eProcurement adoption is ensuring that suppliers meet with buyers’ procurement processes and procedures. Suppliers may need to make a lot of procedural changes before they can reap the benefits of reduced costs, less administration and fewer errors. eProcurement is a long term commitment and buyers or sellers who fail to keep up with it will see eProcurement being deemed less effective, or indeed a failure.
There are many advantages of suppliers adopting eProcurement. Increased productivity and efficiency is achieved as less paperwork and administration is required as orders are sent, processed and invoiced electronically. There is less manual data entry which means that the risk associated with errors and payment queries decreases. Orders can be received and processed at any time of the day or night thanks to eProcurement systems, so companies in different countries or time zones are not restricted in the hours that they can trade. Printing and stationery costs are much lower as orders and invoices are sent electronically. Using online catalogues which can be updated immediately with new products or prices, will reduce the number of times a catalogue has to be reprinted, saving both time and money. These are just some of the many benefits of Supplier Adoption.
In order for suppliers to adopt a successful eProcurement strategy, buyers will need to perform a detailed analysis of their current procurement procedures, and convince suppliers that adopting electronic trading will be of benefit to them. Each supplier will need to be assessed to see whether they already trade electronically, or whether the supplier will have to adopt eProcurement procedures. Buyers will need to liaise with suppliers so that both parties know what to expect from eProcurement and how it will be achieved.
Communication between buyers and suppliers is an important aspect of Supplier Adoption and helps to keep suppliers interested and focused on the benefits of eProcurement. Providing help and support as well as answering questions, will help to persuade suppliers to adopt eProcurement. Existing eProcurement buyers and suppliers who promote Supplier Adoption can show reluctant suppliers how effective and efficient it can be. Buyers and suppliers can also promote Supplier Adoption on their websites, and other promotional literature to provide information on the benefits of Supplier Adoption and how other suppliers can get involved.
The electronic marketplace, eProcurement, eInvoicing and trading electronically are all designed to make business to business (B2B) purchasing more cost and time efficient. As the advantages of eProcurement become more apparent, and more suppliers adopt eProcurement, there will be fewer objections, and fewer reasons for suppliers not to adopt electronic trading. With a range of eProcurement and Electronic Trading software and vast experience with public and private sector companies, find out how ProcServe is committed to helping you increase Supplier Adoption.
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