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Primary ERP Tender Management Processes Bypassed by 30%

Oct 2, 2024 | News

Why Are ERP Tender Management Processes Bypassed?

ERP (complex) tender management processes are frequently bypassed by everyday users across organisations worldwide—by as much as 30% and more in some instances! This presents a significant challenge, so why does it happen?

    1.  Expertise Required: ERP tender management platforms often require specialist training due to their complexity and integration with multiple systems.
    2. Poor User Experience: Users who do not access these platforms regularly may find them difficult to navigate and avoid using them whenever possible.
    3. Slow Response Time: Lengthy onboarding processes for new suppliers hinder timely responses to any new opportunities.
    4. High Software Licensing Costs: The cost of adding users to the system can be prohibitive, leading to limited access across the organisation.
    5. Non-Core and Off-Contract Purchases: Organisations often restrict the use of ERP platforms to core and contract-based purchases only, leaving gaps in non-core procurement.
    6. Effectiveness vs. Compliance: Middle management often argue that complex system restrictions hinder their ability to meet business goals efficiently.

Risks of System Bypass

1. Lack of Accountability: Off-system purchases lead to unclear decision-making and the risk of overspending or misuse of funds.
2. Reduced Visibility: Fragmented procurement data makes it hard to track spending trends or identify areas for improvement.
3. Insufficient Insights: Missing data limits the organisation's ability to make informed budgeting and forecasting decisions.
4. Data Privacy Risks: Storing sensitive information in spreadsheets, emails or share drives exposes the organisation to costly compliance risks and data breaches.
5. Miscommunication: Without an auditable structure, tender processes can become unclear, increasing the risk of disputes with suppliers.
6. Corruption and Ethical Risks: Informal methods increase the chances of unethical practices, where senior management may be held accountable for any misconduct.

    The Solution

    Adding a simpler and easy to use tender management system for all non-core or off-contract purchasing can act as a secondary safety net, mitigating these issues.

    Talk to us via the request contact for more information about our easy, fast and affordable solution.