Q: What is the difference between an ERP and an SRM system?

A: An ERP system can help you communicate with your suppliers via documents (e.g., purchase order, invoices) mainly for purchasing, while SRM integrates your suppliers in your workflows for:

• Supplier recruitment, pre-qualification and approval
• Supplier lifetime management (e.g., categorization, onboarding, performance…)
• Centralized or distributed purchase request
• Category management or project procurement
• Sourcing-to-settlement or procure-to-pay
• Goods/Materials: Open market order, blanket contract or standing order
• Services: One-time service contract or long-term outsourcing contract
• Strategic supplier relationship management

So that you can be a lot more efficient in your interactions right from the beginning with your suppliers and your suppliers can give you better service, and you get more bang for your buck.

Q: Why are data essential in modern procurement management?

A: The more you can see and manage, the more at ease you and your team will be. SRM provides you with the visibility necessary to gain control over supplier risk, compliance, performance, contracts and spend.

Q: How can I increase negotiation power with SRM Purchase Request?

A: One of the biggest downfalls of decentralized purchasing is the inability to form mutually beneficial relationships with suppliers. However, with SRM Purchase Request, each of your distributed organizations can submit its purchase request and they will be automatically merged into a large purchase order which comes access to the perks volume purchasing affords, mainly greater negotiating power. This negotiating power can be used in several places. The most common of these is price. Volume purchasing often comes with bulk discounts.

Q: How can I drive cost savings with SRM Quick Quote or e-Tendering and Reverse e-Auction?

A: SRM Quick Quote or e-Tendering can help you eliminate unqualified suppliers and look beyond prices. Quick Quote or e-Tendering can also help you standardize your RFP and reduce the switching cost of choosing a new supplier. The lower the switching costs, the more you can benefit from conducting a reverse e-Auction.

SRM Reverse e-Auction can help you get the best price. Adding Quick Quote or e-Tendering into the process can help ensure that you are getting the best value and quality.

Q: If I only need e-Tendering, Reverse e-Auction or Procure-to-Pay, can I use only that part of SRM?

A: Yes, SRM has sublicenses for Quick Quote, e-Tendering, Reverse e-Auction, Procure-to-Pay, Contract Management and Fixed Asset, etc.