Hardware Procurement Automation: All You Need to Know

The Traditional IT Hardware Procurement Process

Let's discuss traditional hardware procurement, the classic way to acquire assets for your organization.

It involves finding the ‘most affordable’ vendor, completing extensive paperwork, and then managing logistics. 

It begins with your needs assessment 

You begin by making a list of all the hardware you need. You'd look at and jot down the number and kind of laptops, printers, or any other accessories you'll need (10 MacBook Air 2023, 4 Lenovo Yoga Books, and so on…)

You'll also pay attention to things like:

• Processing power requirements

• Storage capacity needs

• Network bandwidth demands

• Compatibility with existing systems

for each device you plan to procure. 

Larger organizations that deal with big data analytics might need high-performance computing (HPC) systems.

You then plan your budget 

The next step involves budgeting—deciding how much to spend on your hardware purchases.

Hardware procurement involves a significant financial commitment. According to Spiceworks Ziff Davis's 2023 State of IT report, companies spend an average of 35% of their IT budget on hardware.

It is at this stage that you take into account the total cost of ownership (TCO), a step that involves calculating:

• Initial purchase price

• Installation and setup costs

• Ongoing maintenance expenses

• Energy consumption

• Eventual disposal or recycling costs

And a typical enterprise server's TCO over three years is often 200-300% of its initial purchase price. Therefore, it is essential to look beyond the sticker price.  

In this stage, you must also weigh the pros and cons of buying and leasing equipment. Buying equipment outright means a more considerable upfront cost, but you own it and can use it as long as you want. On the other hand, leasing spreads the cost out over time, which is easier on your cash flow. 

Find the best vendor

Here's where traditional deployment gets tricky: the endless experiment to find the best, most reliable vendor to supply you with all the necessary equipment in your calculated budget. 

You'd always want to work with vendors with a proven track record of delivering quality products and services. This means researching them well, reading reviews, and perhaps even reaching out to other businesses that have worked with them.

Then, there are service levels and support agreements to think about. These agreements outline the expectations for service quality and the support you can expect to receive. You must negotiate clear terms that point out the response times, availability, and resolution process for any issues that might pop up.

Going for the cheapest option isn't always the most cost-effective in the long run. Balance cost and quality, and save on annual downtime costs (We know it’s complicated 😣).

You place your order

You've done your homework, picked your vendor, and it's time to pull the trigger. 

This is where you confirm orders (praying they’ll reach you on time) and make records. 

These records are your safety net. You'd be surprised how often discrepancies appear between what was ordered and what shows up at the loading dock. According to a survey, about 15% of all B2B orders have some error.

That's not a risk you want to take with expensive IT hardware’.

Challenges With Traditional IT Hardware Procurement Process

Traditional IT hardware procurement means walking a tightrope. Inefficiencies can bog down operations, drain resources, and create issues that ripple throughout an organization. 

Here are some pressing challenges traditional hardware procurement can involve (with some real user concerns):

Complexity in vendor management

First things first: Managing relationships with multiple vendors can be frustrating.

Each vendor has its pricing structures, delivery timelines, and contractual terms, and you soon find yourself in a tangled web of communication and coordination.

The sheer volume of emails, calls, and meetings required to manage these relationships takes time and effort. Moreover, negotiating the best deals and maintaining positive relationships with all vendors is difficult. 

This is compounded by the need to find suppliers who align with sustainability goals, which 85% of companies find difficult.

Lengthy procurement cycles

The traditional procurement process involves lengthy approval chains, multiple layers of sign-offs, and bureaucratic red tape. From the time a need is identified to the time the hardware is delivered and operational, pleasant March days can turn into hot June summers. 

For fast-paced industries, that could be a big roadblock. Delays in procurement stall critical projects; in the worst-case scenario, you’ll miss deadlines and lose clients. ⌛

Lack of transparency and tracking

Another significant issue is the lack of visibility into the procurement process. In many organizations, different departments use different systems to track orders, which leads to fragmented information that’s difficult to piece together. 

This lack of transparency can translate into duplicate orders, missed deliveries, payment issues, and difficulty monitoring the lifecycle of each piece of hardware. As a result, organizations suffer from poor data quality, which can be costly. According to Gartner, poor data quality costs organizations $12.9 million each year.

Cost overruns and budget constraints

Budget overruns often plague traditional procurement processes. The lack of real-time data makes it challenging to keep track of spending and leads to surprises when invoices come in. 

See what a Redditor writes:

Moreover, manual processes are more prone to human error. 

What if your procurement teams order incorrect quantities of equipment or miss early payment discounts?

 Inefficient resource allocation

What if your IT staff is forced to spend more time on paperwork than on pushing your organization forward? That’s what happens with the traditional way of handling IT procurement.

Instead of driving innovation, they’re stuck in the weeds—chasing down quotes, managing orders, and resolving endless procurement issues. 

Risk of non-compliance

Non-compliance is another significant risk. Industries are becoming increasingly regulated, and the lack of proper controls and documentation in traditional procurement is bound to spell trouble. 

If you fail to meet internal policies or external regulations, you could face legal issues, fines, and a hit to your organization’s reputation.

Siloed communication and collaboration

And let’s talk about communication—or rather, the lack of it. Traditional IT procurement often happens in silos; departments work independently instead of as a cohesive unit. A disjointed approach breeds misaligned priorities and duplicated efforts. For example, while IT might prioritize performance, finance could be focused solely on cost, resulting in conflicts and less-than-ideal decisions.

Sustainability and environmental concerns

Lastly, the traditional procurement process often falls short when organizations aim to be environmentally responsible. In the conventional method, you prioritize cost and operational efficiency over sustainability and long-term ecological impact.

Without automated systems to track hardware’s lifecycle, managing assets in a way that minimizes environmental impact is challenging. This leads to increased e-waste and missed sustainability targets. Automation improves sustainability by optimizing resource usage, reducing waste, and ensuring efficient lifecycle management through regular maintenance and timely upgrades.

What is Hardware Procurement Automation

Simply put, it is the future of IT asset procurement.

Procurement automation means using advanced technologies or outsourcing methodologies to reduce the time and manual tasks associated with traditional procurement processes.

Instead of relying on spreadsheets, emails, and constant back-and-forth with vendors, procurement automation saves time and money by implementing systems that integrate multiple vendors on the same platform and systems for digitally tracking down the entire process. 

Procurement automation automates vital aspects of traditional procurement. 

• Vendor selection: Automates the evaluation and shortlisting of vendors based on predefined criteria like price, quality, and delivery terms

• Request for Quote (RFQ) management: Automatically sends RFQs to selected vendors and manages their responses

• Purchase order creation: Generates purchase orders based on approved requisitions

• Invoice matching and payment processing: Matches invoices with purchase orders and delivery receipts and automates payment approvals

• Contract management: Creates, tracks, and renews contracts without repeated oversight

• Inventory management: Keeps track of stock levels and automatically reorders items when they fall below a certain threshold

• Compliance and audit: Ensures all procurement activities follow company policies and regulatory requirements

• Supplier performance monitoring: Automatically tracks supplier performance metrics, like delivery times and order accuracy

Benefits of Automating IT Hardware Procurement

You unleash many benefits when you invest in at least some form of procurement automation. 

Let's look at them:👀

It saves a ton of time and leads to faster procurement cycles

When you automate IT hardware procurement, you'll cut the time spent on purchase orders by more than half. 

Instead of waiting for multiple approvals and dealing with manual paperwork, you can get things moving with just a few clicks. This means faster delivery times, quicker project launches, and smoother operations overall. 

Improves accuracy and reduces errors

Manual data entry and communication often lead to incorrect quantities, incorrect orders, or missed payments. Automation reduces these risks by standardizing processes and ensuring that all data is accurate and up-to-date. It introduces accuracy that would make your math teacher proud.

For example, with automation, a software application tracks all asset orders and automatically matches purchase orders with invoices to ensure correct quantities. It prevents over-ordering or duplicate payments and even sends alerts if discrepancies arise.

That means fewer incorrect orders, less time spent fixing mistakes, and happier end-users who get exactly what they need. It also leads to a 50% reduction in invoice exceptions–bye-bye, billing disputes!

Enhances visibility and control over your hardware

Automation brings real-time visibility into your entire hardware stack.  From tracking spending to monitoring supplier performance, everything is at your fingertips. This helps you make more informed decisions, avoid unnecessary costs, and tightly grip your IT budget. 

You can also set up approval workflows that ensure every purchase goes through the proper channels. Need the CFO to sign off on purchases over $10,000? Easy. Do you want to limit certain employees to specific types of hardware? Done. This level of control reduces maverick spending–you know, those sneaky purchases that bypass the usual process.

Ticks all your compliance boxes 

With automation, you benefit from compliance that keeps the auditors off your back. Automation ensures real-time compliance by enforcing standardized processes and automatically generates audit-ready documentation. 

With automated systems, you're looking at about 82% improved compliance with procurement policies. Everything's tracked, logged, and easy to audit. You get 100% visibility into your IT hardware spending, compared to only 60-70% with manual processes.

Helps you manage resources better

 Your  IT staff can focus on what they do best—driving innovation and managing critical projects. Instead of spending hours on tedious tasks, they can allocate their time and skills to areas that bring more value to the organization. 

Moreover, you also benefit from improved supplier relations. Did you know that 68% of suppliers prefer working with businesses that have automated procurement? It makes their lives easier, too. You'll likely see faster response times, better pricing, and even preferential treatment. It's a win-win situation.

Irons out vendor issues 

Dealing with multiple vendors is often a logistical nightmare. Automation simplifies vendor management by centralizing all communications, contracts, and performance metrics. 

You can easily compare suppliers, track deliveries, and ensure that you’re always getting the best value. Plus, it makes building and maintaining strong vendor relationships much more manageable.

Gives you more freedom to scale your business

As your company expands, so will your procurement needs. Automated systems can handle growth much better than manual processes as they are built to scale and handle high volumes and complexity without messing up. One study found that automated procurement can process up to 10 times more purchase orders than manual systems in the same timeframe.

Automation ensures that your procurement process can keep up without requiring additional resources, whether adding new locations, expanding your IT infrastructure, or simply growing your team.

Cost reductions (the ultimate win)

Lastly, automation in procurement allows for reduced overhead costs because of efficient processes and better deals with suppliers. We're not talking chump change, either—organizations typically see 5-10% cost savings on their overall IT hardware spend. 

For a mid-sized company spending $5 million annually on IT hardware, that's a cool $250,000 to $500,000 back in your pocket. Even small savings over time add up and make room in your budget for other essential IT activities.

Read More: Procurement Outsourcing: A Comprehensive Guide for IT Teams

Don’t Let Your Procurement Process Get as Outdated as a Floppy Disk. Switch to Workwize!

So there you have it!

Automating your IT hardware procurement is the way forward for organizations. You'll save time, money, and probably a few gray hairs. Here's how: 

• Buy or rent a wide range of products from our local vendors worldwide directly within the Workwize platform. This means maximum stock availability. (We can also collaborate with local suppliers if you wish to order stuff from them.)

• Get global delivery of IT equipment and peripherals within just 5-7 business days anywhere you like— remote employees’ homes, your HQ, remote office, or one of our global warehouses.

• Also procure starter kits or welcome packages with your company logo or let employees pick from a wide range of gear (IT equipment is just one feather in our hat).

• Stay updated about your assets with accurate and timely updates on their location with a track-and-trace link, and ensure 100% visibility 

• Use a self-service portal to let employees enjoy a truly automated asset procurement with all purchases automatically enrolled for seamless asset management.

• Customize hardware with CTO models to include additional storage or RAM, or select local keyboard options when ordering.

Workwize also helps with:

IT Equipment Deployment: Workwize lets you deploy all the hardware you procure easily. Send work-ready, MDM-enrolled equipment to employees with just the settings and permissions you like. You also get a centralized view of all equipment assignments and can easily replace faulty or broken equipment. 

All this while you enjoy 100% visibility into assets’ locations, status, usage, and more.

IT Equipment Management

Once your equipment is all setup and running, use Workwize to manage your assets throughout their lifecycle.

• Know all about your asset, like who has what and its current and depreciating value (as well as whether it is second-hand or brand new). 

• Provide a self-service portal for your employees to request items, repairs, and maintenance, as well as a chatbot for quick assistance.

• Integrate with your HR or directory system to streamline employee transitions. We automatically lock accounts upon employee departure, organize a pickup, and wipe the device upon departure.

Zero-touch IT Equipment Retrieval

Enjoy friction-free, smooth retrievals from your global workforce without worrying about the complexities that come with it.

Workwize handles all employee communication, logistics, and packaging to ensure your assets reach you safely and securely. Once employees leave or the assets end their useful lives, you can request retrievals with a single click. 

IT Equipment Disposal

Workwize helps you dispose of or donate end-of-life assets in an eco-friendly manner per the country’s laws. Get a certificate of data destruction to ensure compliance. 

Workwize also supports integration with communication apps like Slack or your current HRIS software. 

Book a Workwize Demo now to automate IT procurement.