We often have clients and prospects ask us, what’s the difference between an ERP system and an eProcurement system? ERP is a business process management software that is meant to tie together the facets of an organization to improve the processes. The goal is usually to integrate activities, such as product planning, inventory management, CRM etc.. into one cohesive system. Generally speaking, an ERP system is built for finance departments and accountants.
Often businesses will try to use an add-on procurement module, but that is usually not enough. Unfortunately, very few ERP systems have an add-on module that can handle all of the procurement functions and do it well. Creating a custom component is typically very expensive and not worth the price. Selecting an independent, standalone procurement system is usually the correct path for many organizations.
On the other hand, an e-Procurement system is explicitly designed to meet the procurement needs of the organization (sourcing, spend analysis, supplier management, contract management, purchasing). An e-Procurement System is a one-stop-shop to meet all the procurement needs of your organization, seamlessly integrated into a single complete system. eProcurement systems help firms to use strategic sourcing leading to spend savings by cutting down on maverick spending. Employers can identify areas for improved efficiency. It provides your employees with an easy, intuitive tool to engage in the procure-to-pay process while giving your procurement department full control over where and how it is allowed to spend.
• Provide organization-wide visibility into procurement functions.
• Support every process requirement throughout the entire contract lifecycle.
• Offer a high degree of compatibility with other organizational systems.
• Align with overall organizational processes, compliance standards, and industry-wide procurement processes and standards.