ERP Procurement and Spend Management Compass
An ERP Outlook: Are SAP’s and Oracle’s Spend Management Capabilities a Fit With Your Own Technology Plans? Part 1
Jason Busch, Executive Editor, Spend Matters
Going back five years, very few procurement groups could passionately support the adoption of ERP procurement and sourcing applications within their organizations. At the time, both Oracle and SAP were long on marketing and vision, but short on global-scale references for implementations, not to mention broad solution coverage (i.e., supporting the entire source-to-pay process). But flash forward a number of years, and the ERP procurement decision has become far more complicated. SAP and Oracle have materially evolved their Core eProcurement applications and built out other capabilities, including innovative—yes innovative—capability in certain areas (e.g., spend visibility in SAP’s case; supplier management in Oracle’s).
This Spend Matters Compass research brief provides high-level context as well as a decision framework to help companies assess when ERP or best of breed may be more appropriate for specific areas. As part of this analysis, we examine current capabilities as well as provide a shortlist ranking inclusion guide for each module. Alternative recommended supplier lists for shortlist inclusion in each area are also included. Our relative ranking methodology for each solution area does not represent a comparative ranking of capabilities (e.g., ERP vs. ERP or ERP vs. best of breed), but rather our view of how companies should prioritize ERP vendors for procurement-related technology shortlist decisions.
In Part 1 (i.e., this research brief) of our analysis looking at ERP procurement technology, we analyze SAP’s and Oracle’s capabilities in the following functional areas:
- Spend visibility
- Supplier information management
In Part 2 of this analysis, which will publish in Q3 2010, we will provide further analysis of the following functional areas and relative ERP competitiveness and product strengths/weaknesses:
- P2P enablement (including supplier enablement, content management, master data management and supplier network capability)
- Contract management
- Invoice management