In response, Simon Dadswell, Director of Marketing, PROACTIS
Traditional, ‘heart-and-lung’ ERP-style implementation projects do not provide an effective answer to organisation-wide Spend Control. They are too costly, time-consuming and do not take into account existing IT complexities and process issues:
Consider the case of an organisation with multiple locations and business units…
They typically have:
- Multiple financial information structures across units
- Varying information systems (ERP & Financial)
- Varying size and cultures
- Operations spanning multiple time zones
- A higher likelihood of organisational change, and
- Higher complexity of change management
In addition, within the realm Spend Control they have other specific challenges including:
- Varying procurement maturity and approaches across different business units
- Varying spend classification schemas
- Separate supplier bases causing lack of volume consolidation etc.
What is required is a range of Spend Control applications, inherent application design and overall flexibility that can “inject-life” into ageing ERP-infrastructure; to maximise existing IT investments - cloud-based solutions that can be deployed rapidly and provide a ROI in just one fiscal period.
This is more about agility, adoption (employees, suppliers) and incremental process change/metric improvement than heavy multi-year ERP implementation projects.
These solutions must provide multi-location, multi-business unit, and multi-national organisations with the tools to: integrate all aspects of Spend Control (source-to-contract
), standardise policies and processes, improve operational efficiencies and adapt to organisation change.
In ANY organisation, Spend Control is a journey. In a large multi-location, multi-business unit organisation, that journey requires a support system with the flexibility to help Finance and Procurement “get started”, improve incrementally, and effectively respond to change over time.
That is a far cry from traditional, large-scale, multi-year and costly ERP-style implementation projects!