Cloud creates opportunities for ERP-based procurement

Many organizations benefit from having an Enterprise Resource Planning (ERP) system in place, it collates, manages and interprets data from a variety of activities such as customer service, finance, human resource and purchasing. They also integrate all internal data-collection systems so that all business functions rely on one single data base.

There is a high demand for ERP systems, and it doesn’t look like that will change any time soon. These systems deliver on many different levels helping to overcome many different challenges a business has to face.

However, ERP systems are unable to meet all of the business needs, the features provided work well for functions such as finance and HR, but procurement often is frustrated by the rigidity and functional limitations. Today’s purchasing departments face a choice of using an ERP system and dealing with the connected limitations or moving to an alternative best-of-breed solution.

If they choose a best-of-breed system, it will need to be seamlessly connected to the ERP system’s purchasing functionality, which will be more than likely a cloud-based solution. eProcurement software automates manual processes and helps to manage organization-wide spend, delivering a multitude of business benefits.

Nevertheless, one of the main challenges that procurement faces when planning to move away from an ERP system is convincing the rest of the business that they need better functionality and hence a new solution.

Integrating a cloud-based solution with an ERP system will invariably raise questions, especially from the IT department. However, it is important to remember that today cloud based solutions can be securely and seamlessly integrated with any ERP. A platform which comes with its own ready configured Integration Platform as a Services (iPaaS) is certainly a major step forward in convincing the finance and IT departments.

Best-of-breed cloud-based, eProcurement solutions offer a host of benefits across the business that are far reaching and extend beyond the wall of the procurement department. Better spend control, more efficient order processing and payments are just a couple of advantages any business can benefit from. Another is having a single view all of all spend across the whole business, including multinational branches creating visibility and cost savings.

Featured in: Procurious