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Why a CRM system is out of place in Procurement
Summary
In today's business world, characterized by increasing complexity in supply chains, growing compliance pressure and the need for sustainable processes, many companies are looking for solutions to optimize their Procurement . A frequently chosen approach is to use existing CRM systems for Procurement - a decision that appears efficient at first glance, but creates significant problems in the long term.
Limits of CRM systems in Procurement
The use of a CRM system in Procurement often results from the desire for a quick solution. Many companies resort to this because CRM systems are already implemented and offer simple data management functions. The idea of using a centralized system that is already being used successfully in sales seems obvious.
CRM systems are designed to manage customer relationships and fulfill this task with flying colors. They offer functions such as:
- Centralized customer data: Storage of customer information for sales
- Sales forecasts and analyses: support for customer acquisition and retention
But when it comes to supplier management, CRM systems reach their limits:
1. focus on customers instead of suppliers: CRM systems primarily address end customers and do not offer sufficient functions for strategic collaboration with suppliers.
2. lack of integration of purchasing data: Important purchasing processes such as supplier evaluations or price inquiries cannot be automated.
3. lack of transparency: KPIs such as quality assessments, supplier loyalty or price developments are not or only incompletely mapped.
4. complexity in document management: certificates such as ISO certificates often have to be managed manually - a considerable effort with a high potential for error.
Why an SRM is the future
Just as CRM systems have become indispensable in sales, SRM will establish itself in Procurement . Companies that use SRM benefit from:
- Increased efficiency: reduction of manual processes
- Improved supplier evaluation: Detailed insights into performance and risks
- Real-time data: Fast and well-founded decisions through dynamic analyses
Tacto: More than just an SRM
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 the 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.
Conclusion
A CRM system may be indispensable in sales, but it is not enough in Procurement . An SRM system offers not only a digital, but also a strategic basis for managing supplier relationships. It enables companies to work more agilely, transparently and efficiently - and thus prepare themselves for the growing challenges of the market.
Your next step? Rethink the status quo and ensure that your Procurement is fit for the future. Use the advantages of an SRM system to secure your long-term competitiveness. Download this whitepaper to find out how you can strategically manage your Procurement instead of a CRM.
In many companies, the customer relationship management (CRM) system forms the basis for most sales, marketing and customer activities. Overwhelmed, some misuse their CRM system in the hope that they can use similar functions to sales for purchasing management. However, using a CRM system as a replacement for an SRM is not a pragmatic solution, but a dangerous dead end that massively jeopardizes the success of purchasing.
