Deploy Highly Effective Spend Control Without Replacing Your ERP System

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As a senior executive, you are probably asking yourself what you can do next to make a significant impact on your company's profitability. Many in your position are looking at Spend Control as a likely next move.

You may be wondering if it is possible to implement effective Spend Control without first replacing your existing Enterprise Resource Planning (ERP) system. You know from experience that process can be long, expensive and risky. You don't want to do it if you can possibly avoid it. You may also realise that just swapping out your basic financial systems won't, in itself, enable Spend Control. Something more will be needed even with a new ERP system.

The good news is that you can deploy highly effective Spend Control around just about any core financial management or ERP system. In fact it makes good sense to use an eProcurement system that is outside the bounds of ERP for two important reasons:

  1. Spend Control is about managing business processes that are outside the realm of ERP. For instance, it manages the processes before a PO or invoice hits ERP and before a supplier is added to ERP. And it uses a whole new range of information about suppliers, RFPs, contracts and catalogues that is not even in your ERP system.
  2. Spend Control involves many more people than those who use ERP. 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.

In this paper we discuss the key considerations for deployment of new eProcurement systems to work hand in hand with your existing ERP system. However, effective Spend Control is about much more than just information systems.


 

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