Spend Matters features a guest post from Patrick Hunter, Senior Vice President, Marketplace Operations at MFG.com.
A common myth in today’s sourcing world centers around ERP systems. Nearly 80% of the business world believes that with an ERP system, anything is possible, especially when it comes to sourcing. Many experts feel that purchasing and sourcing are synonymous.
This is the first mistake. ERP systems are about managing the flow of purchase orders to suppliers to ensure there is enough inventory to meet manufacturing build requirements. Additionally, they provide future purchase requirements based on consumption and help manage the cost of goods. Essentially, ERP systems make sure that an organization’s production line continues to operate.