Siemens and its new Procurement System

Siemens has recently adopted a new procurement system which aims to streamline purchases through its vendors and suppliers. The system is entirely electronic, eliminating the need for redundant paperwork and frustrating loss of time. Users who wish to join the Click2procure system must integrate the new purchasing system into their back-office legacy systems. This does not come cheaply or easily, and Siemens has set up contractor GPL to integrate purchasing systems. It is important to note that new users of the system can reduce costs by only using the new standard exchange. Although, the risk obviously increases if a local business foregoes its old purchasing system in favor of Click2procure’s. Whenever a major change in the way a company operates is rolled out, an inevitable change in corporate culture occurs. In this case, the fact that local companies would be dropped in favor of national powerhouses may affect the culture in a negative way. Although the overall outcome is less money spent and overall efficiency, the downsides may affect the company more than they had anticipated.