What can a poor procurement process result in?

We’ve previously written about the challenges of procuring software and technology and how companies can improve in this area. As a strategic tech partner for our clients, one of our goals is to help them become better at technology procurement. We achieve this by educating them and guiding them in understanding how digital tools can support their business objectives.

In this article, we expand on the importance of being a skilled technology procurer and explore the potential consequences of getting it wrong.

Possible consequences of a poor procurement process

1. Incorrect solutions and wasted resources

If neither you nor your software supplier truly understands your needs, you risk investing in a solution that doesn’t align with your business requirements. This risk is big if you haven’t clearly defined your business objectives and cannot articulate why the solution is needed. The consequences may include:

• Unnecessary features: The system includes functionality you’ll never need
• Misaligned focus: The product doesn’t address the most critical issues
• Expensive reworks: Attempting to adjust the solution to better fit your needs incurs additional costs

2. Fragmented infrastructure

When decisions about software and technology are made in isolation, without considering the bigger picture, you risk creating an IT environment where systems and applications cannot communicate with each other. This leads to:

• Inefficiencies in workflows
• Limited opportunities for data analysis
• Increased security risks due to inconsistent management

3. Discontent among users and staff

If users are not involved in the development process, the solution may become difficult to use or ineffective in daily operations, leading to:

• Decreased productivity
• Low user adoption
• High costs for training and adjustments

4. Escalating costs

When a procurement process is flawed, it almost always results in the planned budget being exceeded:

• Unexpected expenses arise during the project
• Maintenance and support are not properly accounted for
• Poor communication leads to rework and delays

How to ensure a successful procurement process

The foundation of a successful procurement process lies in finding a reliable partner who doesn’t just deliver the solution you ask for. A good tech partner should educate you, guide you through the decision-making process, and ensure the technology you invest in truly supports your business objectives. By being transparent, thinking strategically, and adapting to your needs, the right partner can help you avoid costly mistakes and instead create long-term value for your business.