How to choose the right procurement system for your projects

Managing projects, you’ve likely experienced how a lack of control in the procurement process can lead to cost overruns, delays, and reduced quality. How can you avoid these challenges? A good procurement system might be the answer, but how do you find one that suits your business?

-> Try our guide: Do you have effective cost control in your company’s procurement procedures?

As the head of your company, you’re often tasked with balancing time, quality, and cost in your projects—a common challenge across all projects. This concept is often referred to as the Scope Triangle, which you can read more about here: A Project Management Primer: Basic Principles – Scope Triangle. In short, the Scope Triangle illustrates the trade-offs between time, quality, and cost in a project, where one factor is usually fixed and the other two vary, requiring quick decisions to manage changes effectively.

Common challenges you may face in the procurement process

Let’s start by identifying some of the most common challenges you’re likely to encounter:

• Lack of financial control: You may have experienced projects going over budget due to poor oversight in procurement.
• Time-consuming processes: Are you still using Excel or manual systems like email to manage procurement? Unfortunately, these methods can lead to inefficiencies and increase the risk of errors.
• Lack of documentation: Without sufficient oversight of approvals and necessary documentation, confusion and misunderstandings can arise within the project.

Does this sound familiar? If so, it’s crucial to consider which systems can help you overcome these challenge

What should you look for in a procurement system?

A procurement system should be more than just a tool for placing orders. Here are some key areas to consider when evaluating a new system:

1. Planning and resource management
   The system should help you plan purchases in line with the project’s timelines and deliveries. Is it easy to plan and keep track of what’s needed and when?
2. User-friendliness
   A good system should be simple to use, even for employees who aren’t IT experts. Can you quickly find the features you need without extensive training? A user-friendly system ensures that the procurement process runs efficiently, without causing unnecessary stress or delays.
3. Implementation time and complexity
   How easy is the setup? Is it quick and straightforward, or does it require significant time and resources to implement? Ideally, you should be able to start using the system as soon as possible without complications.
4. Automation and workflow
   Does the system make daily tasks easier by automating manual processes, such as the smart reuse of data and workflows? Can you standardize processes so everything runs smoothly from purchase order to payment?
5. Quality assurance and documentation
   Ensure the system supports approval workflows and can handle all necessary documentation securely. This is essential for maintaining oversight and avoiding future conflicts with customers or subcontractors.
6. Financial control
   Do you have complete visibility over project costs? Can you quickly identify deviations from the budget and make adjustments accordingly? This is crucial for ensuring profitability.
7. Scalability
   As your company grows, the system should grow with you. Is the system flexible enough to handle more projects and increased demands?
8. Data security
   Ensure that data security is robust. Does the system have strong procedures for security, storage, and backup of information? Protecting sensitive data from unauthorized access and having recovery procedures in place in case of data loss is crucial.

How the right procurement system can make a difference

Choosing the right procurement system can help ensure that both financial and quality goals are met in your projects. With simple and efficient workflows, you can save time, reduce costs, and avoid unnecessary conflicts with customers and subcontractors. Additionally, a good system will help maintain strong relationships by providing all the necessary tools for documentation and traceability.

Summary

There’s a lot to consider when selecting a procurement system for your business. Start by identifying your needs and look for a solution that can adapt and grow with your company. A good solution will give you financial control, better quality assurance, and increased efficiency – all without unnecessary complexity.

Do you have questions about finding the right system for your business? Schedule a demo and discover how a modern procurement system can make a difference for you.

Some other articles that might be of interest to you:

5 reasons to use purchase orders in your business

10 important values you get from using CostTracker