When Zycus approached me to write about ProcureTech failures, I was at once both confused and impressed.
I was confused because a ProcureTech solution provider rarely talks about initiative failures. To actually run towards danger (thank you, Jon Mellon), asking me to shine a light on the problem is not a usual request, especially in this Hype Cycle, marketing pump-up days on steroids era. In fact, before being acquired by ORO Labs, ProcureTech 100s Lance Younger chastised me for creating a negative narrative—ProcureTech CEO Younger stresses we must change the negative narrative and focus on accelerating the positive.
Hindsight Note: I wonder if Lance knew in November 2024, when the above post was written, that ORO Labs would acquire his company five months later, in March 2025. Perhaps a discussion for another day.
The Request At Hand
I agreed to write the paper, provided my results would not be buffed up or diluted. In other words, let the research result chips land where they land. Another condition was that I would agree to share the Zycus response, without editing, on how they would address the ProcureTech initiative failures I would look into. That was the only condition.
I then began digging through the Procurement Insights archives, which included white papers, blog posts, and knowledge notes to identify what my 40-plus years in the industry would reveal.
I divided the research into two segments and chose the top five from an ERP-related failure standpoint and the top five from a pure ProcureTech standpoint. Below, I will share two case examples from each group. You will have to download the paper to see the remaining three case examples from each segment.
I then engaged 10 CPOs to ask them the following three questions:
- Are ProcureTech initiatives that are part of an ERP implementation have a higher chance
of failing. If Yes or No, Why?
- Do standalone ProcureTech only implementations have a higher chance of failing. If Yes
or No, Why?
- Given the case examples above, what would you say are the three most common factors
that led to the initiatives’ failure?
The 10 CPOs’ answers to those questions will be available shortly. You can download the white paper from the Zycus landing page when it is up.
In the meantime, here are the two sets of ERP-related and non-ERP-related ProcureTech failures. Please feel free to wear the CPO hat and provide your answers to the above three questions:
ERP-Related ProcureTech Failures
FoxMeyer Drug’s SAP Implementation (1990s)
- What Happened: U.S. pharmaceutical wholesaler FoxMeyer implemented a $100 million SAP system to overhaul procurement and distribution, targeting completion in 18 months. By 1996, it processed only 10,000 orders nightly versus 420,000 under the old system, leading to sabotage by workers, damaged stock, and bankruptcy (Ratcliff IT).
- Impact: One of the most cited IT procurement disasters, costing stakeholders hundreds of millions and disrupting healthcare supply chains.
Sainsbury’s Automated Fulfillment System (2003-2007)
- What Happened: UK supermarket giant Sainsbury’s invested £150 million+ in an automated fulfillment system for its Waltham Point distribution center, aiming to streamline procurement and supply chain operations. Installed in 2003, it suffered “horrendous” barcode errors, and despite claims of functionality in 2005, was scrapped in 2007 (Ratcliff IT).
- Impact: Massive financial loss and reputational damage, a cautionary tale for overambitious automation without validation.
Pure ProcureTech Failures
TradeShift’s Early E-Invoicing Push (2011–2015)
- What Happened: TradeShift, a cloud-based ProcureTech platform, launched in 2010 with a bold vision for e-invoicing and supplier collaboration. By 2015, despite $75 million in funding, its initial rollout floundered—clients like the UK’s NHS abandoned it due to usability issues and slow adoption.
- Impact: Millions in losses; TradeShift survived but took years to regain traction.
GEP’s SMART Platform Stumbles (2020–2023)
- What Happened: GEP’s SMART, a unified ProcureTech suite launched pre-2020, aimed to dominate source-to-pay with AI and cloud tech. Between 2020 and 2023, several high-profile clients (unnamed, per industry whispers) reportedly scaled back or ditched it due to implementation nightmares and cost overruns.
- Impact: Potentially hundreds of millions in client losses; GEP persists but with scarred rep.
My Take On Why?
For those of you who have been longtime followers of this blog, you know what I will say regarding my take on the above failures, which has never, nor will it ever, change. Here is an excerpt from my post: Are you chasing solutions or solving problems? (Part 1 of 3):
Over the years with each amazing breakthrough – and yes, spreadsheets and amber or green monochrome monitor graphics were amazing in their time, I was asked what I think about the “evergreen” evolution of high-tech computing. My answer has always been the same – it’s not about the technology but the problems the technology solves. In other words, as great as the tech may be, it means nothing if it doesn’t come after people and process understanding.
When organizations make the mistake of leading with technology, they are bending their people and processes around an equation-based model approach in which the tech is the driver for success.
When you lead with people and process understanding – an agent-based model, technology moves from a functional driver to a problem-solving tool that streamlines and delivers efficiencies and tangible results.
Whether linked to an overarching ERP initiative or a standalone implementation, ProcureTech initiatives’ generational failure rate will continue unabated regardless of the era’s technology promise.
Once again, I will share the link to the Zycus landing page to download the 10 CPOs’ responses to the 10 most notable ProcureTech industry fails as soon as it becomes available.
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Procurement Insights
ProcureTech Failures: 10 CPOs Look Back At the Industry’s Most Notable Cases
Posted on April 19, 2025
0
When Zycus approached me to write about ProcureTech failures, I was at once both confused and impressed.
I was confused because a ProcureTech solution provider rarely talks about initiative failures. To actually run towards danger (thank you, Jon Mellon), asking me to shine a light on the problem is not a usual request, especially in this Hype Cycle, marketing pump-up days on steroids era. In fact, before being acquired by ORO Labs, ProcureTech 100s Lance Younger chastised me for creating a negative narrative—ProcureTech CEO Younger stresses we must change the negative narrative and focus on accelerating the positive.
Hindsight Note: I wonder if Lance knew in November 2024, when the above post was written, that ORO Labs would acquire his company five months later, in March 2025. Perhaps a discussion for another day.
The Request At Hand
I agreed to write the paper, provided my results would not be buffed up or diluted. In other words, let the research result chips land where they land. Another condition was that I would agree to share the Zycus response, without editing, on how they would address the ProcureTech initiative failures I would look into. That was the only condition.
I then began digging through the Procurement Insights archives, which included white papers, blog posts, and knowledge notes to identify what my 40-plus years in the industry would reveal.
I divided the research into two segments and chose the top five from an ERP-related failure standpoint and the top five from a pure ProcureTech standpoint. Below, I will share two case examples from each group. You will have to download the paper to see the remaining three case examples from each segment.
I then engaged 10 CPOs to ask them the following three questions:
of failing. If Yes or No, Why?
or No, Why?
that led to the initiatives’ failure?
The 10 CPOs’ answers to those questions will be available shortly. You can download the white paper from the Zycus landing page when it is up.
In the meantime, here are the two sets of ERP-related and non-ERP-related ProcureTech failures. Please feel free to wear the CPO hat and provide your answers to the above three questions:
ERP-Related ProcureTech Failures
FoxMeyer Drug’s SAP Implementation (1990s)
Sainsbury’s Automated Fulfillment System (2003-2007)
Pure ProcureTech Failures
TradeShift’s Early E-Invoicing Push (2011–2015)
GEP’s SMART Platform Stumbles (2020–2023)
My Take On Why?
For those of you who have been longtime followers of this blog, you know what I will say regarding my take on the above failures, which has never, nor will it ever, change. Here is an excerpt from my post: Are you chasing solutions or solving problems? (Part 1 of 3):
Over the years with each amazing breakthrough – and yes, spreadsheets and amber or green monochrome monitor graphics were amazing in their time, I was asked what I think about the “evergreen” evolution of high-tech computing. My answer has always been the same – it’s not about the technology but the problems the technology solves. In other words, as great as the tech may be, it means nothing if it doesn’t come after people and process understanding.
When organizations make the mistake of leading with technology, they are bending their people and processes around an equation-based model approach in which the tech is the driver for success.
When you lead with people and process understanding – an agent-based model, technology moves from a functional driver to a problem-solving tool that streamlines and delivers efficiencies and tangible results.
Whether linked to an overarching ERP initiative or a standalone implementation, ProcureTech initiatives’ generational failure rate will continue unabated regardless of the era’s technology promise.
Once again, I will share the link to the Zycus landing page to download the 10 CPOs’ responses to the 10 most notable ProcureTech industry fails as soon as it becomes available.
30
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