eProcurement & Procure-to-Pay Resources

Gartner: How to Determine Whether Your ERP Will Meet Procurement and Sourcing Requirements

Published August 20, 2020 at 10:00 AM

BuyerQuest has helped many businesses expand their MRP and ERP system capabilities by providing a more intuitive purchasing flow. These companies reviewed their specific procurement needs, much of it based on the feedback of their end user community, and realized that their legacy ERP was not meeting the needs of the procurement and user community.

We see many businesses that are struggling to make this determination for themselves but are unsure where to start.

Recently, Gartner published a report entitled, “How to Determine Whether Your ERP Will Meet Procurement and Sourcing Requirements” that explores the types of research that application leaders should perform to best determine an ERP’s ability to meet the business’ unique procurement requirements.

The report includes some of the key challenges faced by organizations as they look at their application portfolio. Among those challenges are “application leaders without procurement expertise struggle to understand how to best evaluate whether their ERP solutions are the right fit for procurement’s needs, procurement and sourcing teams often request specialty or best-of-breed applications, but this can be difficult to justify if significant investments have already been made in ERP, and specialized procurement solutions are increasingly marketing themselves as the one-stop-shop to manage all spend. This has created more questions than answers when it comes to ERP interoperability.”

The report offers recommendations for businesses hoping to determine if an ERP alone will meet their procurement requirements. A few of the recommendations include, “Determine whether the scope of procurement’s requirements spans the entire source-to-pay process or something narrower. If the scope is limited to procure-to-pay, an ERP may be “good enough.” When e-sourcing, contract life cycle management and spend analysis are required; a stand-alone solution might be a better option. Evaluate whether procurement aims to manage direct spend as well as indirect. The specialized procurement tools on the market are most mature in managing indirect spend. ERP suites are often a better solution for direct spend. Document procurement’s requirements to manage specific categories of spend that require workstream specific functionality. If managing the full life cycle of temporary labor (aka. services procurement) is needed, separate/specialized applications will likely be required ”

With a singular focus on simplifying and streamlining the procure to pay process for organizations and a seamless integration with leading ERP’s such as Oracle, the BuyerQuest Platform fits well with companies that see the need for expanding their ERP’s purchasing capabilities.

Read the full Gartner report, “How to Determine Whether Your ERP Will Meet Procurement and Sourcing Requirements”

Learn more about BuyerQuest Procure-to-Pay

Gartner, How to Determine Whether Your ERP Will Meet Procurement and Sourcing Requirements, Patrick Connaughton, 23 August 2019.

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