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Building a Case for eProcurement

By April Marzzacco – Strategic Sales Consultant, EqualLevel, Inc.

Purchasing departments across the country are reporting that they are busier than ever with staff shortages, budget cuts, and ongoing supply chain issues. It is not uncommon for agencies that are still limping along with manual entry to be struggling with the volume of purchase orders coming in and high bookkeeper burnout, while also dealing with maverick spend and non-compliant purchasing.

Whether it is these challenges or others that your department is facing, you may believe now is the time to find a solution that will streamline your purchasing process. Based on your research, and recommendations from other agencies, you may have already decided that implementing an eProcurement marketplace is just that solution. 

What is a business case?

Presenting a business case is considered the best way to introduce new initiatives to stakeholders. According to projectmanager.com, a business case is a presentation or document that outlines why a project should be executed, and how its benefits outweigh its costs. The goal of a business case is to convince stakeholders of a project’s value, and that the project you are proposing is a sound investment in which they should direct resources. To build a business case for EqualLevel’s eProcurement system, it is important to provide higher-ups with the information they need to understand both the importance of automating, and the return on investment (ROI). 

There are many recommended formats for structuring a business case but in general, it should cover the following five elements:

1. The Challenge

In this first section of your business case, you will outline your current process and the reasons why you believe change is necessary. Challenges you might include:

  • Manual entry is slowing down the purchase process
  • Manual entry causes more errors
  • Bookkeeper burnout 
  • Maverick spend
  • Non-compliant purchasing

You should also include the costs associated with your current system in this part of the business case. These could include any costs related to software, the wages paid to employees who manually enter requisitions and purchase orders, as well as the costs associated with continuing to overpay for goods and services. 

TIP: When tallying your current costs, if there is information you are not able to find within your organization, industry benchmarks should suffice. 

2. The Solution

In this section of your business case, you will present the solution you are recommending, namely, implementing EqualLevel’s software. This will be where you define what an eProcurement system is. Here is an example: “An eProcurement marketplace is integrated with an organization’s ERP system and offers a single, seamless platform that facilitates all of the processes associated with the shop-order-pay transaction. EqualLevel’s dashboard offers a consumer shopping-like experience where users can shop from all of their organization’s approved suppliers in one place. With this set-up, best value options are displayed and organizations report higher user acceptance and greater compliance.”

This is also the part of the business case where you will present how the software works. The best way to explain the functionality and capabilities of EqualLevel’s AI-powered software is to see it in use. EqualLevel creates customized software demos so you, and your organization’s stakeholders, can see the marketplace in action. The demos allow interested parties to get hands-on experience with the system and it lets them see how EqualLevel’s Savings Advisor (ELSA) locates savings in real-time, while a user shops.

3. The Cost 

EqualLevel is able to provide a worksheet to quickly calculate the results you can reasonably expect to achieve through deployment of its eProcurement marketplace. The worksheet divides savings into two areas: “soft” savings, where process costs will be reduced (the resources may be reallocated to other, more value-added, activities), and “hard” savings, where costs will actually be reduced (using ELSA). Once you have calculated your expected savings, you can subtract that from the cost of the marketplace software to determine your ROI. 

4. The Benefits

The next section in a business case should include the benefits your organization can anticipate from implementing your initiative. In this case the benefits of an eProcurement marketplace include:

  • Efficiency: Automating leads to faster cycle times and improved productivity. The elimination of paper and manual steps frees up time for employees to focus on more critical initiatives.
  • Cost Savings: With all approved vendors housed in one centralized location, best value products can be easily identified. 
  • Compliance: By automating the three-bid process and showing only contracted vendors, an eProcurement marketplace helps organizations comply with state and federal regulations.
  • Transparency: Robust reporting capabilities help ensure purchases conform to established policies. Real-time visibility into purchasing activities discourages maverick spending and provides leadership with valuable Insights.

5. The Timeline

Generally, an eProcurement marketplace can be implemented in 60 to 90 days and often a return on investment can be achieved within a single fiscal year. EqualLevel can provide a generic timeline for implementation to present to stakeholders or an estimated timeline can be created that is tailored to your organization’s unique situation.

Contact EqualLevel

A well-organized and thoughtful business case could be the difference between being able to implement an eProcurement marketplace, or not. Should you need help with this process, or for more information, go to www.equallevel.com.

April Marzzacco is a Strategic Sales Consultant for EqualLevel where she brings over 20 years of eCommerce and procurement experience to her role. Prior to EqualLevel, she served as a Business Process Analyst at the Lee County School District where she was responsible for production support, analysis, process documentation, training, and process improvement. She also worked in the district’s Procurement Department where she was instrumental in integrating both the EqualLevel marketplace and an eSourcing platform.

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Time is Money: Learn How to Save Both with an eProcurement Marketplace

If there’s one thing the COVID-19 pandemic has taught us in the business world, it’s that so much of what was traditionally done manually can more quickly and easily be accomplished online. This includes the manual, paper-based procurement process which has been plagued with inefficiencies in requisitioning, ordering, invoice reconciliation, and payment processing. Outdated, inflexible, and costly purchasing systems also restrict the ability to conduct broad-based procurement with the supply community.

What if there was an “easy” button for the procurement process? Over the last two decades, eCommerce has exploded in the consumer world with companies like Amazon making buying almost anything as easy as 1-2-3. By digitizing the procurement process, the shopping experience for businesses can be just as simple and can lead to increased savings and operational efficiency.

EqualLevel’s eProcurement marketplace allows organizations to quickly implement a cloud-based, multi-vendor, procure-to-pay marketplace that ensures compliance and can be accessed anywhere, at any time. Increasing transparency, efficiency, and compliance, the marketplace enables organizations to conduct business in the office or remotely, and it provides greater access into an approved, fully digital supply network.

The marketplace seamlessly integrates with existing enterprise resource planning (ERP) systems so that all approved suppliers/vendors and all goods and services managed by procurement are located in one easy-to-use, easy-to-administer system. It spans the entire procurement lifecycle, from punch-out commerce solutions to shopping for goods or services, approval workflow, catalog and contract pricing, purchase order automation,and receipt-invoice matching.

Organizations that have implemented an eProcurement marketplace have quickly recognized the many benefits of digitizing the procurement process. To list a few:

Efficiency: By automating a significant portion of the procurement process, an eProcurement marketplace leads to faster cycle times and improved productivity. The elimination of paper and manual steps also frees up time for employees to focus on more value-added activities.

Cost Saving: Cost-saving with an eProcurement system comes not only from ordering through preferred vendors but also from increased spend visibility. The EqualLevel Savings Advisor (ELSA) analyzes quotes to ensure the best value and uses machine learning to become smarter with every purchase. Utilizing a real-time, federated search across punchout sites, similar to Travelocity or Orbitz, data is collected from distributed sources and artificial intelligence (AI) technology uses this data to identify savings opportunities.

Compliance: Implementing a one-stop, multi-vendor punchout marketplace of all approved suppliers and contracts ensures compliance with state and federal regulations. The system automatically creates a three-bid process to determine product price, select the supplier (among approved vendors), and create the requisition or shopping cart for approval.

Transparency: eProcurement also makes it easier to conduct and analyze reports on procurement systems in order to ensure that the procedures conform to established policies. Real-time visibility into what supplies employees are purchasing and from which vendors provides valuable business insight and eliminates maverick spending.

Innovating an outdated procurement process with an online eProcurement marketplace provides a single, seamless platform to facilitate the shop-order-pay transaction. It provides employees with a more streamlined and efficient experience so they can optimize every dollar spent and every moment doing so.

When it comes to procurement, time is money. Neither time nor money should be wasted. Isn’t it time for your organization to hit the easy button and jump in?

Learn more about the EqualLevel eProcurement marketplace at https://equallevel.com/marketplace.