Yet, despite the acquisition/organic growth there still remains a ‘void’ in the Infor solution portfolio: Spend Control & eProcurement.
Infor has continued to place Spend Control and eProcurement on the back burner in favor of core financials and supply chain and related areas.
This is surprising, given the enthusiasm for the space and the double-digit CAGR in most key areas including P2P, sourcing and supply management.
As a result, Infor FMS SunSystems users should not ignore the Spend Control “void”.
Demand for Spend Control & eProcurement
Current economic conditions are driving a marked increase in demand for Spend Control and eProcurement solutions because it provides an effective mechanism to minimize the cost of purchasing and deliver measurable ‘bottom line’ savings to the organization.
For example, “greater supply base consolidation will yield a greater ROI for procurement”:
According to the Hackett Group, there is a direct correlation between a decrease in the number of suppliers/billion of spending and decreased total procurement cost as a percentage of spending. Each reduction of 2,000 suppliers per billion of spending generates savings of more than 5 percent of overall procurement costs.
Spend Control and eProcurement software helps procurement operations to automate manual-intensive processes to “achieve more for less” and bring more “spend under management” e.g.:
- perform more competitive bidding events
- free up time to undertake category management
- engage more effectively with the organization to understand demand requirements
- conduct a larger number of supplier performance reviews per FTE etc.
This is just one area for opportunity when it comes to spend control.
Given the strategic importance of Procurement – especially when it comes to areas like sourcing, supplier development/ collaboration, compliance and working capital management etc. – ROI potential for an effective Spend Control solution is high.
PROACTIS & Infor FMS SunSystems
PROACTIS, a “best-in-class” provider of Spend Control & eProcurement solutions, has been “plugging the gap” for Infor FMS SunSystems users for over ten years and helps clients to leverage the value of their existing IT investments.
PROACTIS for Infor FMS SunSystems offers:
PROACTIS is designed to manage all spend, across all suppliers.
The software streamlines purchasing and invoice handling, imposing vital controls over spending, delivering instant cost-base visibility and automating typically inefficient paper intensive processes to bring savings from efficiencies and economies of scale.
PROACTIS is an environment presenting a suite of hosted applications that can be used as the core of an organization’s buy-side eCommerce strategy, or as simple enhancements to any (i.e. not just PROACTIS Purchase-to-Pay!) purchase-to-pay application.
The suite include solutions for sourcing, contract management, catalogue & content management, electronic invoicing, and vendor recruitment, adoption and appraisal etc. When delivered alongside PROACTIS Purchase-to-Pay, the combination represents the most comprehensive eProcurement solution today.
Integration with Infor FMS SunSystems
PROACTIS integrates with all versions of Infor FMS SunSystems. The “wizard-based” integration tools make it easy to link PROACTIS and other business systems.
This offers exceptional business benefit and much lower cost of ownership for Infor FMS SunSystems users.
PROACTIS & Infor FMS SunSystems: The Benefits
PROACTIS addresses a number of challenges faced by Infor FMS SunSystems users today e.g.:
Regardless of corporate procurement guidelines & processes, whenever staff need to procure goods they will seek out the easiest route to satisfaction. Without an effective spend management solution the easiest route is often outside corporate control.
PROACTIS addresses the issue of maverick spend by offering:
Lack of Cost Pipeline Visibility
- Controlled catalogues and suppliers
- Up-front coding, budget and commitment checking
- Authorization workflow etc.
In a recent survey for one of our clients prior to implementing PROACTIS we found that more than 60% of inbound invoices were “invisible” to them prior to receipt by Accounts Payable. There was no electronic record of any liability and management had no collective view of corporate exposure.
PROACTIS addresses the issue of cost pipeline visibility by offering:
Process Inefficiencies and Inconsistencies
- Transaction visibility throughout workflow
- Executive dashboards of “vital signs”
- Commitment reporting etc.
Manual processes are time consuming, prone to error and open to fraud. Often they lack the transparency and auditability required by world-class organizations.
PROACTIS addresses the issue of process inefficiencies and inconsistencies by offering:
- Electronic workflow
- Email and task integration
- Invoicing & mis-match troubleshooting etc.
There is no doubt that if a procurement solution is not adopted by everyday users it will fail to control spending for the organisation. If users can find an easier way to satisfy their business need than be employing the system they should, they will. Most user interfaces are focused on the transaction, not the user. Most workflows demand too much thought to be classified as automatic.
PROACTIS addresses the issue of user adoption by offering:
Corporate Governance & Compliance
- Highly intuitive interface
- Transaction ownership and full visibility
- Intuitive buying process etc.
Understanding your corporate responsibility and providing the controls you need to comply with the requirements of the Sarbanes-Oxley Act and other similar guidelines is an important part of the role of a CPO. How closely can you control the habits of your staff? How easy is it to manage maverick spend?
Balancing ease of shopping with the rules that you need to impose is a tightrope that must be walked in order to allow people to do their job within corporate constraints.
PROACTIS addresses the issue of corporate governance & compliance by offering:
Managing Vendor Relationships
- Full accountability & visibility of transactions
- Electronic corporate guidelines
- Compliance engine etc.
How important is the relationship you have with your vendors? What would happen if the relationship faltered? How often do you refresh the relationship or appraise the vendor’s performance? How do you measure that? What is the risk to you if the vendor “disappears” overnight?
PROACTIS addresses the issue of managing vendor relationships by offering:
- Electronic vendor grading
- Supplier performance measurement
- Vendor visibility etc.