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access to cheaper capital. (Source: PayStream Advisors 2012) KEY CHALLENGES Implementation of e-procurement solutions is not without its challenges. When a company selects a solution, it is not only making a change within the four walls of the organization, but also pushing for change in the supply chain. It is important to demonstrate to the supplier community that there is a compelling value proposition for it as well; otherwise, suppliers may resist. By demonstrating that adopting these solutions will accelerate payments, create new business referrals, provide enhanced reporting and improved cash management, a high level of supplier participation can be achieved. While the technical hurdles used to be significant, clearly the advance in technology over the past 15 years has eliminated most of the early challenges. With today's workforce more technically savvy than ever before, the barriers to entry are not as great as they once were. Change in itself can be difficult, but the rewards can be great. Giving up old ways for your own business is hard enough, and even harder when the change is driven by outside factors. Keeping the focus on the value proposition postchange and not the change itself will keep everyone in the supply chain working toward the same goal. ENTER THE GPO An effective way for wineries and suppliers to lessen the burden of change management and control technology costs is to work through a Group Purchasing Organization, or GPO. GPOs have been around for more than 100 years and have been very effective in healthcare, industrial manufacturing and agriculture. GPOs help buyers by offering outsourced procurement services coupled with a group of qualified suppliers. The benefit for suppliers who offer preferred pricing, terms and service standards to the GPO is a reduction in overall selling expenses and a broadening of the sales channel. A cost-effective technology platform, along with GPO services, can result in a net gain for both buyers and suppliers, leaving more time to focus on the art of winemaking. Matt Cromar is the COO of VinAsset LLC, a leading Group Purchasing Organization for the wine industry, based in Sausalito, Calif. He has been building and implementing e-procurement solutions for 16 years and was instrumental in the creation of the early supplier trading networks. Comments? Please e-mail us at feedback@vwmmedia.com. • Wire-less Tank Temperature Control • Fermentation Status From Anywhere • Brix/Temp/Pump-over Tracking • E-mail Alarm Notifications • Production Software Integration • Temp, Humidity, CO2, Night Air • Energy Saving Functions 707 938-1300 WWW.ACROLON.COM 92 V I N E YARD & WINERY MANAGEMENT | Sept - Oct 2013 ® w w w. v w m m e d i a . c o m