How to Improve the Value of Procurement: Is Your ERP System Enough?
As chief procurement officer (CPO), is one of your goals to be considered a more relevant, strategic area for the company? If the answer is “yes”, here are four ways to improve your value through eProcurement.
No doubt, the number one challenge which manufacturing organizations face today is to reduce cost while increasing efficiencies. But, focusing on operational performance does not speak to the broader strategic impact that procurement can make to the rest of the business.
Moving Beyond Cost-Savings
If CPOs expect to achieve a place at the C-suite table, then you need to move beyond cost savings to deliver more strategic value to the organization. If you’re using a legacy ERP system to manage your procurement function, it may be time to assess if this system is enough to create the needed efficiencies and strategic foresight you need to lead by excellence.
Does your ERP system perform functions like supplier collaboration, spend analytics, e-sourcing, contract life-cycle management or supply-base management? These are all mission-critical to making effective purchasing decisions, leveraging spend and creating economies of scale. The fact is, a fully integrated eProcurement solution can deliver benefits far beyond an ERP system and with a much faster return on investment.
Four Ways to Deliver Real Value with eProcurement
If you’re not leveraging an eProcurement suite, you are missing a critical opportunity to achieve the full scope of benefits your department can deliver to the overall organization. Here are four ways an eProcurement solution can help elevate departmental value:
- Optimize Spend: An eProcurement suite can help you get to the “why” behind spending and provide tangible savings through strategic sourcing, spend reduction analysis and identify other cost-savings opportunities.
- Leverage Data Insights: Data transparency and the free-flow of information between systems is key to ensure that stakeholders can easily access the most up-to-date information. With eProcurement, you have access to robust reporting features that allow you to better understand how you spend and where you can make adjustments to achieve the greatest impact.
- Realize Faster Time to Value: eProcurement data provides insights for more strategic decision-making and will track and report on the contributions you’re making to the organization.
- Integrate Seamlessly: No other method will allow you to raise your competitive advantage more quickly than eProcurement. It integrates easily into existing ERP systems with seamless data movement and communication.
Bottom Line Results
The opportunity for CPOs to create value is significant. When used properly, eProcurement can provide critical insights to informed decision-making and can provide necessary tracking and reporting benefits to improved performance.
To find out more about how eProcurement can supercharge your ERP system, download our case study: