Digitalization of procurement for complete beginners: How does implementation and operation work?
Introducing an e-procurement system in a company is a project that can be divided into several phases. The good news is that with modern cloud tools, implementation does not take long and can often be done in a few weeks, and in an extended form within a few months. Below is the typical course of software implementation and operation.
🗺️ Analysis and preparation: Map your current procurement process in detail from A to Z. Describe how a request is created, how it is approved, how you select suppliers, how purchase orders are generated, goods received, invoices checked, etc. For each step, note how long it takes, who is responsible, and where the weaknesses are (delays, duplicated work, inconsistent data, manual entries, rule bypassing, etc.). This analysis will reveal potential gaps that the new system should fill – e.g. you may find that a weakness is manual retyping of data from emails into Excel, or that you waste two days approving trivial purchases. Alongside shortcomings, also identify what works well so the new process preserves and supports it.
🗺️ Defining benefits: Based on the analysis, formulate what specific benefits you expect from the e-procurement tool and communicate them to management and stakeholders. For example: “With the new system, we will increase the share of purchases from preferred suppliers from 60% to 90%, achieving 10% cost savings. We will cut the processing time of one order from 5 days to 1 day. We will gain 100% visibility of all expenses in real time.”
🧑🤝🧑 Creating an implementation team: At the same time, assemble a team responsible for implementation. This team ensures that the project is not only “an IT thing” or “a procurement thing,” but has support across the company. The team should include representatives from procurement (main system users), finance (for accounting integration), IT (for integrations and technical support), and ideally a management representative to provide authority. Each member should have a clearly defined role – the project manager coordinates activities, department reps collect feedback from colleagues and pass it on, IT handles technical issues, and management communicates the project’s strategic importance. A strong team ensures digitalization becomes a shared initiative, not an isolated project.
📅 Detailed planning: With the vendor, create a detailed implementation plan that includes a timeline (milestones), role allocation (who is the project manager on your side, who on the vendor’s side; key contacts from IT, finance, etc.), and resource allocation (how much staff time it will take, when trainings will be held, who will prepare data for migration). Align expectations – discuss with the vendor what the implementation involves and what materials they will need from you (e.g. supplier list, approval hierarchy, list of purchased items). Communicate internally about the project, so everyone knows it’s starting, what it means for them, and when/how it will affect them.
⚙️ System configuration and integration: This phase is usually handled by the vendor in cooperation with your IT. It involves setting up the software according to your requirements: creating user accounts and access rights, defining approval workflows, configuring fields and forms, setting up item catalogs, customizing the supplier portal, etc. If integration with ERP or other systems is required, integration and data flow testing takes place. The goal is for the new e-procurement tool to communicate seamlessly with your other systems.
🧑🏫 Pilot operation and user training: Once the system is configured, we recommend launching a pilot operation. In the pilot phase, collect user feedback and fine-tune settings, fixing issues if needed. At the same time, conduct user training – not just technical “where to click,” but also explaining why processes are changing. Role-based training has proven very effective: how to create a request, how to approve in the system, how to launch a tender, evaluate bids, issue an order. Believe it or not, companies that invest in thorough training achieve up to 40% higher system adoption and 25% faster realization of benefits.
🖥️ Full deployment and go-live: After a successful pilot, roll out the system company-wide. At this stage, all relevant users should be trained and have access. Update procurement rules, e.g. that all purchase requests must go through the new system and off-system purchases are exceptions. This is a critical phase, and management must support these rules to achieve 100% adoption. During live operation, carefully monitor key performance indicators. Track, for example, what % of purchases go through electronic tenders, average approval time, number of incorrectly entered orders, and savings achieved via e-auctions. Compare these metrics to the baseline and report the realized benefits to management.
🧰 Day-to-day operation and maintenance: Even in daily use, the e-procurement system requires administration and user support. It is advisable to appoint an internal “owner” of the system (from procurement or IT) to manage user accounts, set up new catalogs, solve minor user issues, and communicate with the software vendor. With cloud software, you have the advantage that technical maintenance (updates, backups, security) is handled by the provider as part of the license. Vendors regularly improve features, and new versions are often deployed automatically without downtime. This means the burden on your IT team is minimal, allowing them to focus more on user support than infrastructure.
💡 Continuous improvement: Implementation is not the end. To get the most out of your e-procurement tool, rely on continuous improvement. Analyze the data and identify categories where better prices could be negotiated, or detect suppliers with excessive off-contract spending. With quality data, you can better plan your procurement strategy, respond to user input, and improve the process. You may find it worthwhile to activate another module (e.g. supplier evaluation, advanced analytics) or adjust workflows. Modern systems are scalable, and as your company grows and needs evolve, you can expand the system with much less effort.
Finally, beware of a common pitfall: companies implement the system but then don’t use it to its full potential. To minimize this risk, ensure users adopt it, fix shortcomings, continue training, share successes, and motivate users.
If implementation is done well and without unnecessary obstacles, the operation of a digitalized procurement system will clearly result in positive changes: buyers handle more work in less time, routine tasks are reduced to “a few clicks,” the process is optimized, and management always has hard data on company procurement at their fingertips.
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Several companies tested automatic ordering through AI, whose task was to independently evaluate needs, place operational orders, and maintain optimal stock levels. The result often exceeded expectations — unfortunately, in a negative sense.
Return on investment within the first year of project implementation.*
*The ROI estimate is based on real data gathered from our clients and their successfully completed projects.
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