Rule 1: Sell the benefits to suppliers - don't assume if you build it they will come

We all know that persuading suppliers to participate in e-procurement is in itself a change programme. Let’s face it; your supplier base is probably a mixed bag ranging from multi-national suppliers through to one-man bands, and convincing this range of suppliers to change the way they work is no mean feat.

Like anybody else Suppliers need a reason to participate and having someone dedicated to supplier change is essential. A good structured communication plan is essential, and engaging those suppliers at the correct time is vital, and timing that communication crucial. Suppliers can be keen, but if they don’t see the return in investment in orders being generated they become pretty well turned off.

Any organisation today needs to reduce expenditure, and buyers need to ensure that they are not increasing supplier costs of doing business with them, but ensuring that any changes they instigate offer some benefits.

One example I came across the other day was with a photographer who by doing business with their local authority was reluctantly faced with e-enablement, and the thought of having to raise electronic invoices was a complication he didn’t need. The outcome is that he has seen a month on month increase in cash flow and can actually sends the invoice from his blackberry whilst out on location, as he stated “brilliant – so quick and efficient”, and now takes just 20 minutes a month instead of a day.

Next time: We will look at rule 2 - make it easy for suppliers of all sizes and all levels of technical ability to generate and send you electronic invoices.