In practice, we often see it: people try to integrate the procurement function into the ERP system and spreadsheets. We frequently see it fail. The reason for trying is obvious. The ERP system is already in place and creating, sending and managing purchase orders for product-related purchases works well. So why not use it for the entire procurement function, including non-end product related expenses?
The tooling is in place anyway and the implementation seems to come at ‘limited additional cost’, both in terms of time, resources and licensing. In addition, no integrations need to be built. The information is already in the ERP system and employees are familiar with the ERP system. In short, it’s a win-win for the organization with a fast time-to-value. Unfortunately, this time-to-value is not always realized in practice, because the expected results and business case are not achieved. For example, the cost of licenses and consulting is higher than expected. John Schouten, Director of Product Management, shares 5 reasons to choose a BSM platform for the procurement function in this blog.