Spend Management that’s aligned with your ERP system
Answers to your top 10 questions about why and how to align spend management with your ERP system.
Spend Management is a set of structured business processes that dramatically increase the management and visibility you have over what your organisation spends for all types of goods and services.
You use Spend Management to significantly reduce costs by ensuring that only truly needed and properly authorised goods and services are purchased, and by making sure you obtain best possible value when they are. It also serves to dramatically reduce invoice processing time, effort and cost in Accounts Payable, as well as creating greater efficiencies in Procurement and throughout your organisation.
But you may be wondering if it is possible to implement effective Spend Management 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 Management. Something more will be needed even with a new ERP system.
The good news is that you can deploy highly effective Spend Management around just about any core financial management or ERP system. In fact it makes good sense to use a Procurement system that is outside the bounds of ERP for two important reasons:
1. Spend Management 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 Management involves many more people than those who use ERP. Parts of your Procurement 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. Because the business processes are so different, and because so many people will always be ‘nonexpert’ users, the nature of a good Procurement system is quite different from the nature of most ERP systems. Modern Procurement 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 ERP systems.
Fortunately, most Procurement 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.
Download the guide here.
Top 10 Questions About Why & How…
This guide will establish the key considerations for deployment of new Spend and Procurement systems to work hand-in-hand with your existing ERP system. However, effective Spend Management is about much more than just information systems.
Proactis enables digital trade for all, by helping organisations around the world to control 100% of their spend. We work with our customers to transform their Source-to-Pay processes; to help them save money and create efficiency gains while increasing compliance and reducing risk. From sourcing projects, contract management and procurement transactions to supplier collaboration and automated invoice processing, our integrated spend management solutions streamline and control all purchasing and spend. Proactis serves over 1,000 enterprise clients and 2 million suppliers. Our solutions are used daily by over 3 million people in 100+ countries. The company was admitted to the AIM market of London Stock Exchange in June 2006.
About Embridge Consulting
Embridge Consulting was founded in 2009 as an independent consultancy advising businesses who were looking to embark on a change programme where efficiencies and cost savings can be delivered using modern technology. Embridge Consulting works with Proactis to implement Procurement solutions and help their clients to gain the tremendous benefits of effective spend management. Embridge Consulting in addition to their Elite partnership status with Unit4 was awarded the ‘new’ Proactis partner of the year in 2020 – www.embridgeconsulting.com
Tracey Adams Marketing Manager Tracey.firstname.lastname@example.org