Implementing an IBX e-procurement solution : Are there any success factors?

Abstract: Title: Implementing an IBX e-procurement solution – are there any success factors? Subject: FE02E bachelor thesis, logistics Authors: Linus Jönsson, Emma Oscarsson, David Skoglund & Max Stafström Tutor: Roger Stokkedal Keywords: E-procurement, implementing, critical success factors, benefits, problems, MRO-products Background: One of the major problems that organizations face today is how to bring home savings. E-procurement solutions can be a tool to reach efficiency and reduce costs within organization. One of the biggest spend issues companies wrestle with are indirect material, also defined as MRO products (maintenance, repair, operations). Purpose: The thesis will examine why companies decide to implement an e-procurement solution and what their expectations are. The purpose of the research was to identify which the success factors are when implementing this type of solution. Eventual problems that may emerge during the implementation and benefits that the implementation might lead to, will also be presented. Methodology: The thesis has a survey design which studies variables in an e-procurement implementation. The scientific perspective is positivistic and has a deductive approach. The sample contains customers to IBX which use the entire solution, from planning to follow-up. The data has been gathered through a post-questionnaire. Result /Conclusion: When deciding to implement an e-procurement solution companies base this decision on a number of reasons. The most common reasons are to increase the internal efficiency and reduce the supplier base. There are also other encouraging reasons to the implementation which all concerns saving time and money. Once the decision has been made, expectations on the solution arise and companies expect the solution to bring benefits. Most common expectations are much alike the reasons concerning saving time and money on purchases of MRO-products. Besides the reasons and expectation companies must consider the critical success factors, both before, during and after the implementation. These factors will determine whether or not the implementation will be a success and they can be divided into factors that affect all companies and factors that just affect some. The key factors, affect all, are defining an e-procurement strategy, change management and training and education. Secondary factors will affect some companies, and depending on the situation organizations must take them into their perspective. These factors are i.e. well defined steering group and communication. If companies don´t consider the success factors problems may emerge, where change management is one of the most common problem. This is an organizationalproblem just like lack of information from external parts and lack in project management skills internally. Besides the organizational problems companies can also experience technical problems, which are directly associated to the solution that‟s implemented. Some of these problems are complex usability, complicated to communicate and integrate. By avoiding the problems companies can expect to see more benefits from the solution, the most experienced benefits are compliance savings, reduced supplier base and lowered administrative costs. These benefits mainly considers time saving and are all associated with the reasons to the implementation and expectations on the solutionResult /Conclusion: When deciding to implement an e-procurement solution companies base this decision on a number of reasons. The most common reasons are to increase the internal efficiency and reduce the supplier base. There are also other encouraging reasons to the implementation which all concerns saving time and money. Once the decision has been made, expectations on the solution arise and companies expect the solution to bring benefits. Most common expectations are much alike the reasons concerning saving time and money on purchases of MRO-products. Besides the reasons and expectation companies must consider the critical success factors, both before, during and after the implementation. These factors will determine whether or not the implementation will be a success and they can be divided into factors that affect all companies and factors that just affect some. The key factors, affect all, are defining an e-procurement strategy, change management and training and education. Secondary factors will affect some companies, and depending on the situation organizations must take them into their perspective. These factors are i.e. well defined steering group and communication. If companies don´t consider the success factors problems may emerge, where change management is one of the most common problem. This is an organizationalproblem just like lack of information from external parts and lack in project management skills internally. Besides the organizational problems companies can also experience technical problems, which are directly associated to the solution that‟s implemented. Some of these problems are complex usability, complicated to communicate and integrate. By avoiding the problems companies can expect to see more benefits from the solution, the most experienced benefits are compliance savings, reduced supplier base and lowered administrative costs. These benefits mainly considers time saving and are all associated with the reasons to the implementation and expectations on the solution.