Integrating eSourcing and eProcurement - a case against
Add comment November 9th, 2007 David Bush - Iasta
Today, I would like to welcome Alan Buxton, from Trading Partners. Alan contacted me this week with interest in the topic of the week here on ESF.
To do good eSourcing you need to know your data. Good data comes from your eProcurement system because people use this tool to place real orders and buy real things.
To do eProcurement you need to have agreed contracts in place: eProcurement naturally follows on from eSourcing.
So why not plug the two together? Here are two good reasons:
1. The slippery slope to ERP
OK. Let’s assume I’ve integrated eSourcing and eProcurement. I’m probably using eProcurement to purchase stock items so why not plug these into a warehouse management system. All those orders have to be paid - best stick in an accounts payable piece. Well, it doesn’t make sense to have payables and receivables in different places - let’s build in the whole of finance. What about CRM? ….. You can see where this is going: “Look, ma, we built an ERP system.”
Integrating eSourcing and eProcurement is neither ERP nor Best of Breed but is a step on the slippery slope to ERP.
If ERP is for you then fine. But if best of breed is for you then remember that best of breed means focusing on a particular space. Providers who focus in one space and excel at it are unlikely to excel in others.
2. eProcurement data is incomplete
You know what - however good your eProcurement system is, it won’t cover all your spend. With maverick buying on one hand and incomplete category coverage on the other eProcurement systems of today will not have the full story. Relying on data from eProcurement to drive future strategic sourcing exercises will miss out on a potentially large part of the spending picture.
More of Alan’s thoughts can read on his blog. Thanks again to Alan for weighing in.
Entry Filed under: General, Supply Management Best Practices, Technology, e-Sourcing Marketplace
