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Beyond Requisitioning: Getting Past the Downstream Limitations of ERP Procurement Applications

Identifying Savings and Working Capital Management Opportunities that SAP SRM, Oracle and other ERP Providers Alone Do Not Enable

2009 should mark a bellwether year for SAP and Oracle in the SRM and procurement technology arena. SAP, with its recent SRM 7.0 release earlier in May, is debuting its first major procurement technology enhancement in over three years. Based on our research from talking with SAP customers and channel partners, we expect customer demand to ramp steadily for this application and subsequent releases over the coming years. But despite these advancements – and the related customer adoption we suspect will follow – we believe that even the strongest ERP providers have put too much emphasis on the upstream end of the purchase-to-pay (P2P) procurement process at the expense of sacrificing downstream opportunities.

This is because in today’s market, companies are not just looking for ways to streamline the requisitioning and purchasing process to drive both internal and supplier compliance during the buying process. They are also looking to gain greater control over their precious working capital and to identify new savings (and even profit) opportunities by tackling downstream P2P activities. These activities broadly fit into what we can call the invoice automation, EIPP (electronic invoicing presentment and payment) and supply chain finance areas. It is in these downstream procurement areas where companies must look to supplement existing and future ERP investments with other initiatives and solutions to achieve savings and working capital management returns.

After downloading this Spend Matters Perspective, readers will learn what they need to look for when it comes to downstream procurement automation. Given the current market climate, the savings and working capital management stars are beginning to align for rapid adoption of payables and invoice automation technology in the ERP procurement installed base. Learn more about the opportunity now.