Why an SRM system is the ideal preparation for an ERP changeover

Switching to a new ERP system is a demanding challenge for many medium-sized companies. It promises to increase efficiency and reduce costs, but a smooth and successful changeover requires more than just technical adjustments. Particularly in purchasing, which is increasingly confronted with complex tasks such as sustainability, compliance and global supply chain conflicts, switching to a new system can lead to problems without the right preparation. This is where a Supplier Relationship Management (SRM) system comes into play, which not only optimizes purchasing, but also serves as the ideal preparation for the ERP changeover.

‍

‍

The central role of the ERP system

‍

The ERP system (Enterprise Resource Planning) forms the backbone of many business processes in a company. It enables the networking of areas such as finance, personnel and inventories. However, a simple ERP system is often not enough for purchasing. The requirements of modern purchasing are diverse, especially in the context of compliance, sustainability and cost management. In view of these challenges, the SRM system is increasingly becoming an indispensable tool for increasing efficiency in purchasing and managing the company successfully in the long term.

‍

‍

Challenges during the ERP changeover

‍

The changeover to a new ERP system is accompanied by numerous challenges:

‍

• Data migration and integration: Transferring master data to the new system is time-consuming and error-prone.

‍

• IT infrastructure and personnel: Many companies are struggling with a lack of IT resources, which makes implementation more difficult.

‍

• Change management: Employees must be trained to be able to use the new system effectively.

‍

These challenges illustrate how important it is to take preparatory measures at an early stage to ensure smooth integration.

‍

‍

How an SRM system helps with preparation

‍

An SRM system can optimize the entire purchasing process while improving master data quality, making ERP conversion much easier. Here are some of the key benefits:

‍

• Centralized master data: An SRM system consolidates all relevant supplier data so that it is stored in a single source. This facilitates the migration of data into the ERP system and ensures a consistent database.

‍

• Better data quality: Regular maintenance and validation of master data minimizes errors and incompleteness. This is crucial, as incorrect data can lead to problems when integrated into the ERP system.

‍

• Transparency and overview: An SRM system provides a complete overview of all supplier relationships, price developments and contract details. This not only creates transparency, but also enables a well-founded supplier evaluation and strategic purchasing decisions.

‍

‍

Master data: The key to success

‍

An SRM system ensures that the company's master data is well maintained and error-free. Incorrect or incomplete data in different systems can lead to serious problems, such as incorrect prices, faulty deliveries or inaccurate stock details. By centralizing this data and maintaining it continuously, data quality is raised to a new level, which optimizes both purchasing processes and integration into the ERP system.

‍

‍

Further advantages of an SRM system:

‍

• Better supplier communication: An SRM system promotes closer cooperation between departments and suppliers.

‍

• Real-time data: All relevant information is available in real time, which improves the speed of response and efficiency in purchasing.

‍

• Integrated risk management: Compliance data can be recorded and managed centrally, which simplifies reporting and adaptation to legal requirements.

‍

‍

Conclusion: Early implementation pays off

‍

An SRM system should not be introduced after the ERP changeover, but ideally during the preparation phase. It not only offers valuable support in consolidating master data, but also optimizes the entire purchasing processes. With an SRM system, companies can strengthen their purchasing strategy, reduce costs and improve their supplier relationships in the long term. It also ensures that the new ERP system is built on a solid database from the outset, which ensures the success of the entire changeover.

‍

With its solution, Tacto offers comprehensive support for SMEs, which not only includes the advantages of an SRM system, but also offers best practices and direct support for a successful ERP conversion.

‍

Download our white paper now to find out more about how you can ideally prepare your ERP conversion and benefit from an SRM system!

‍

‍

‍