ERP as a foundation - SRM as an extension: why both are indispensable
published on
24.10.2024
An ERP system (Enterprise Resource Planning) is software that integrates central business processes such as finance, production, logistics, purchasing and human resources into a standardized platform. It enables companies to manage data efficiently, optimize processes and improve the flow of information between departments. The aim is to reduce costs, minimize errors and increase efficiency by automating and networking these processes.
An SRM system (Supplier Relationship Management) is software that supports companies in efficiently managing and optimizing their relationships with suppliers. It provides a central platform for collecting, analyzing and monitoring all relevant supplier data such as contracts, certificates, prices and evaluations.
The aim of an SRM system is to improve collaboration with suppliers, automate processes such as procurement and communication and minimize risks. It enables better transparency, faster decision-making and helps to identify potential savings and ensure compliance.
In the modern business world, especially in industrial purchasing, ERP systems are reaching their limits. Although they are essential for handling operational processes, they cannot provide sufficient support in terms of strategic supplier management. These are the greatest weaknesses of an ERP system, which illustrate the need for SRM (Supplier Relationship Management):
1. rigid system and lack of flexibility
ERP systems are often not flexible enough to make quick adjustments in supplier management. Changes to supplier data or evaluation processes usually require manual intervention, which ties up time and resources.
2. spotty data capture and poor data preparation
Once captured in the ERP, data remains static and does not provide real-time insights into supplier performance. This leads to outdated information that increases the risk of suboptimal decisions.
3. high lack of transparency and traceability
ERP systems often do not offer sufficient transparency about price developments, quality assessments or on-time delivery. This data is usually hidden deep within the system, which makes the strategic evaluation of suppliers more difficult.
4. manual integration of QA figures
Key quality management figures such as the complaint rate or defect rate must be entered manually into the system. This increases the administrative effort and the risk of errors.
5. lack of certificate management and document management
Certificates such as ISO certificates must be managed and updated manually. The lack of automated management leads to delays and increases the risk of certificates not being renewed on time.
Holistic supplier overview: Tacto offers full transparency with a 360-degree view of all supplier information, including price developments, evaluations, contract details and important KPIs.
Efficient cooperation & collaboration: Real-time access to all supplier data and automatic QA data integration promote cross-departmental cooperation and increase efficiency through proactive notifications.
Integrated compliance and risk management: Tacto facilitates the management of compliance data (e.g. CBAM, REACH, LkSG) and supports continuous adaptation to new regulations.
More than just software: Tacto not only offers a solution, but also best practices, direct support and a strong network of purchasing managers.
Especially for SMEs: Tacto is a comprehensive solution tailored to the needs of SMEs without the complexity of large systems.
If you would like to find out more, please download the white paper (contains customer references and current market studies).
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