How to Buy the Right Procurement Systems

With the proliferation of enterprise procurement systems available today, buyers are confronted with an anxiety inducing paradox of choice. There are well over 100 procurement software companies worldwide today, each focusing on different parts of the Procurement value chain.

Certain larger providers even argue they can be your “one-stop shop” for the entire Procurement value chain. This plethora of options reflects the increased focus on Procurement organizations as value drivers for the business. Generally speaking, this is great news for supply chain professionals. However, it makes buying Procurement systems and the associated Procurement system architecture decisions more complex.

To make things simpler, it is important to understand that there are 3 main categories of Procurement software solutions. These three categories are:

• ERP systems

• Source-to-Pay (S2P) suites

• Other "best of breed" solutions

Considering each category along with their strengths and weaknesses is important when crafting a holistic Procurement system architecture. More importantly, establishing a strategy at the start of your digital transformation will guide optimal system purchasing decisions. This will preserve precious organizational resources for other impactful initiatives instead of investing in "shelfware".

The worst outcome in any digital transformation initiative is realizing that errors have been made and backtracking is necessary. It is devastating for morale, disastrous for the pocketbook and cruel to your calendar.

Let's discuss the 3 categories you need to master to avoid this fate:

Subscribe to Pure Procurement Premium to read the rest.