Spend Control and eProcurement transform disparate transactional data residing in back-office ERP, accounts payable, general ledger and operational databases into intelligent, actionable enterprise-wide information for improved procurement processes that generate significant bottom-line savings.
Limitations of Legacy Financial Management & ERP Systems
Enterprise financial management and back-end systems store thousands of transactional activities that remain highly fragmented among many different data stores and financial systems. In addition, existing financial management and ERP systems remain primarily focused on financial reporting and less on procurement data analysis and workflow capabilities. Another drawback has been ERP vendors focus on the software/ technology platform rather than a more complimentary suite of software, services, and outsourcing offerings. As many analysts have pointed out, end-users typically require a combination of software/technology, professional services, or outsourcing rather than a one-size-fits-all approach with technology automation. This is where best-in-class providers, such as PROACTIS, excel by offering dedicated professional services, domain expertise, business process methodologies, and outsourcing capabilities.
Spend Control: A Logical Extension & New Opportunity
The gap that exists between back-office transactional applications and sophisticated enterprise Spend Control is bridged by a range of solutions that bring meaning to supplier, sourcing and contract management information and then implementing new procurement and purchase-to-pay policies and change management initiatives to drive cost savings and business efficiencies. Due to the interconnectivity with back-office transactional information residing, captured and stored in back-end systems, Spend Control represents a logical extension and new opportunity for executives to improve processes and leverage investments in their traditional ERP and back-office financial management systems. Additionally, due to the very impressive ROI resulting from Spend Control deployments, executives stand a higher probability of protecting and fortifying their ERP from a single IT vendor mandate.
Manage Processes Outside the Realm of Your Financial Management System
The good news is that you can deploy highly effective Spend Control around just about any core financial management or ERP system. Spend Control is about managing business processes that are outside the realm of enterprise financial management and back-end systems. For instance, it manages the processes before a PO or invoice hits enterprise financial management system and before a supplier is added to the system. And it uses a whole new range of information about suppliers, RFPs, contracts and catalogues that is not even in your back-end systems. Importantly, Spend Control involves many more people than those who use these systems. Parts of your eProcurement system will be used by practically every employee in your organisation. Other parts will be used by your suppliers who are outside the four walls of your organisation.
Cater for the Non-Expert User
Because the business processes are so different, and because so many people will always be ‘non-expert’ users, the nature of a good eProcurement system is quite different from the nature of most enterprise financial management and ERP systems. Modern eProcurement systems have been designed to remove complexity and guide users through intuitive step-by-step processes – a different approach to the transaction processing model within most financial management systems. Fortunately, most eProcurement systems have been designed to make the touch points with your core financial and operational systems limited and non-invasive, making it quite practical to add them to existing financial management and ERP systems.
To learn more, download the PROACTIS whitepaper: “Yes You Can… Deploy Effective Spend Control Without Replacing Your ERP System”