7 Steps to Avoid Failure and Stop Wasting Millions on Procurement Platform Projects

7 Steps to Avoid Failure and Stop Wasting Millions on Procurement Platform Projects


Implementing a procurement platform promises progress, performance, and profit.

But let’s be honest - it can also become a disaster waiting to happen.

Without the right preparation, You could end up with frustrated users, alienated suppliers, and a very expensive piece of software collecting dust.

?? Did you know?

McKinsey says 70% of digital transformation projects fail.

That’s right - most of them don’t even come close to delivering the value they promise.

Let’s make sure Yours isn’t one of them.

Here’s a step-by-step guide to turning potential pitfalls into measurable milestones and making the platform implementation one to brag about.


1. Set Clear Project Goals From Day One

Here’s the thing - if You don’t know where You’re going, how will You know when You’ve arrived?

Goals guide action.

Without them, You’ll struggle to align teams, track progress, or justify the investment.




The Biggest Mistakes Companies Make

  • Launching a platform because “it feels like the right move.”

(Spoiler - that’s not a goal.)

  • Failing to define measurable success metrics, leaving everyone guessing what “good” looks like.

Instead, ask yourself

?? What does success look like in 6, 12, and 24 months?

?? How will we measure ROI?

?? Which KPIs matter most (e.g., supplier compliance, spend visibility, cycle time reduction)?

Examples of Clear Goals

? Short-term

Get 85% of users on the platform within the first six months.

? Long-term

Reduce procurement cycle times by 30% within a year
improve supplier compliance by 20% within a year.

?? Practical Tip

Host a goal-setting workshop with procurement, finance, and operations teams.

Trust me - this one conversation can save months of headaches later.

Real-Life Example

"I once worked with a manufacturing company that jumped into implementing a procurement platform without clear goals.

They figured, "Hey, automation will fix everything!"

Spoiler: it didn’t.

Within six months, teams were frustrated because they had no way to measure success, and leadership couldn’t justify the cost.

Once we reset with specific KPIs -like reducing supplier approval time by 20% - progress became tangible, and buy-in followed."

?? Why it matters

Companies with well-defined goals achieve 40% higher ROI on digital projects


2. Prepare Data Before Implementation

Bad data isn’t just an inconvenience - it’s a dealbreaker.

Think of data as the foundation of a skyscraper.

If it’s cracked, nothing build on top will stand for long.

What Goes Wrong?

  • Duplicate supplier records (e.g., "ABC Ltd." and "ABC Limited").
  • Misclassified spend categories (imagine a $500K spend misreported as "office supplies" when it’s actually logistics).
  • Siloed data stuck in outdated systems or endless Excel spreadsheets.

?? Did you know?

Poor data quality costs companies $15 million annually on average.


Steps to Success

? Step 1

Consolidate supplier records into a single repository.

? Step 2

Cleanse data—standardise categories, fill in gaps, and eliminate duplicates.

? Step 3

Set up data governance processes to ensure quality over the long term.



Real-Life Example

"A global logistics company I worked with had supplier data spread across five systems. When procurement platform went live, they found duplicate suppliers making up 20% of records - causing errors in spend reports and supplier payments.

Fixing the mess delayed the project by three months what costs in resources, money and time.

A little data prep upfront would have saved them a fortune."

?? Why it matters

McKinsey estimates that 30-40% of procurement savings are lost due to poor data quality. Don’t let bad data undermine your investment.


3. Implement the Platform in Stages

Rolling out a procurement platform all at once sounds bold, but it’s usually a terrible idea. (Unless, of course, you enjoy chaos and confusion.)

Instead, phased implementation lets test, adapt, and learn as You go.

Why Phased Rollouts Win

? They minimise risk.

? They allow for real-time feedback and course corrections.

? They build user confidence.


3-Phase Plan for Procurement Platforms

  1. Start Small - Begin with catalogs and purchase orders.
  2. Expand - Introduce supplier management and compliance modules.
  3. Optimise - Add analytics and reporting tools.

Example

"A retail client I worked with piloted their procurement platform with one department first- the merchandising team.

During the pilot, we caught integration issues with ERP system that would have caused major headaches if rolled out company-wide.

By fixing the problem early, the rest of the implementation went smoothly, saving them from potential disaster."

?? Stat to Note

Companies using phased rollouts experience 25% faster adoption and 20% fewer implementation issues.


4. Minimise Excessive Customisation

Here’s a hard truth: every customisation adds complexity, cost, and future headaches. When companies over-engineer their platforms, they end up with something that’s expensive to maintain and a nightmare to update.

Why Excessive Customisation is Dangerous

  • Increased Costs - Forrester estimates that excessive customisation can inflate total costs by 30-50%
  • Update Chaos - Each new system update requires additional fixes.
  • Missed Opportunities - Customisation often locks into old processes instead of enabling better ones.

How to Avoid the Customisation Trap

? Use standard features as much as possible.

? Optimise processes to fit the platform instead of bending the platform to fit outdated workflows.

? Customise only when it directly impacts strategic outcomes.

Example ?

"A logistics company I worked with customised 60% of their procurement platform.

The result?

Their maintenance costs doubled, and every update became a headache.

After reviewing setup, they reverted to standard features, cutting expenses by 20% and reducing downtime during upgrades."


5. Provide Training and Engage Users

Even the best platform in the world is useless if people don’t know how to use it - or worse, if they don’t want to.

Training isn’t a "nice-to-have"; it’s a "must-have."

Essentials for Effective Training

  1. Workshops for Buyers and Finance Teams - show them how the platform solves their specific pain points.
  2. Supplier Training - suppliers often get left behind.

Help them understand the benefits and how to use the system.

  1. Ambassadors - appoint champions in each team who can answer questions and build enthusiasm.

Real-Life Example

"One company skipped training, thinking their platform was 'intuitive enough.'

Spoiler: it wasn’t.

Adoption dropped below 50%, and frustrated teams reverted to spreadsheets.

Contrast that with another client who ran weekly training sessions and provided suppliers with quick-start guides.

Within six months, they hit a 80% adoption rate and reduced procurement cycle times by 25%.

The difference?

Training makes or breaks success."

?? Stat to Note

Companies with strong training programs see 40% higher adoption rates.


6. Build Flexibility Into Contracts

Let’s face it

No project ever goes exactly as planned. (believe me it doesn't , I am doing it since more than 20 years, no matter the technology)

\Flexible contracts give you the wiggle room to adapt when things don’t go your way.


7. Establish a Post-Go-Live Support Structure

Go-live isn’t the finish line - it’s just the starting line.

Without support, users disengage, and platform risks becoming a very expensive shelf product.

Why Post-Go-Live Support Matters

  1. Sustained Adoption - Teams need continued guidance to integrate the platform into daily workflows effectively.
  2. Problem Resolution - Inevitably, users will encounter roadblocks. Quick, reliable support prevents frustration and disengagement.
  3. Continuous Improvement - Monitoring platform performance allows to make iterative improvements and scale its impact over time.




Example

"A financial services firm I worked with saw user engagement drop by 40% within a year because they didn’t assign a team to monitor adoption.

Compare that to another company that created a dedicated helpdesk and ran quarterly training refreshers. Not only did adoption stay high, but they also identified and fixed issues before they became bigger problems."


Conclusion - Plan Smart, Act Smarter

Procurement platforms don’t fail because of technology - they fail because of poor planning, weak data, and insufficient user engagement.

By following these seven steps, You can transform procurement process, save millions, and achieve strategic goals.

And If You need help with Platforms - drop me a DM - we can work it out - whether You are planning, in the middle of the project o shaping post go-live support.

David Aguado

Procurement Director | Head of Global Strategic Procurement | Procurement Visionary | Turning Sourcing Challenges into Business Success | Transforming Challenges into Opportunities

1 个月

Very interesting insides Grzegorz Thanks for sharing it.

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