Beware ERP: Expense & Regret Purchasing

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Beware ERP: Expense & Regret Purchasing 10 Reasons Why ERP Can t Deliver Smarter Spending and Savings ACoupaeBook Feelfreetorepublishexcerptsfromthiswhitepaper,aslongasyoulinkbacktohttp://www.coupa.com forattribution.andit salsookaytosharethisreportinitsentiretywithanyoneyouthinkmightbe interested.infact,i dbedelightedifyoudid.

Coupa Software BEWARE ERP: EXPENSE AND REGRET PURCHASING 2 Introduction Thereisareasonwhy65%ofERPimplementationsfail.ERPsolutionsarecomplex,requireanobsceneamountofresources,aredifficult todeployandevenmoredifficulttouse.nowdon tgetmewrong,erpsoftwaredoeshaveitsplaceinthetechnologyecosystem it s absolutelyterrificformanagingtransactionsandgeneralledger I mjustsayingitsplaceisnotinpurchasing. EveryprocurementprofessionalknowsERPsystemsaren tmuchhelpwhenitcomestoturningbusinessesontosmarterspending practices.chancesareyou rethevictimofanit ledprojectteamthatconvincedthepowersthatbetospendhundredsandthousandsof dollarsonanerpsystemthatwould solvealltheirproblemsandsavethemmillions. Nowyou reforcedtomodelyourprocure to pay processonwhatyourerpsystemcansupport andnotnecessarilyonwhatisbestforthecompany. Nowhereyouare,stuckwithapurchasingprocessthatistime consuming,costlytosupportandavoidedateveryturnbythepeopleyou needtouseit.ratherthanfollowtheprocess,employeespurchasewhattheyneedandexpensetheitemslater,confidenttheywillbe reimbursedforthepurchase.managershavelimitedinsightintospendingasitoccursandoftenregretwhatthey veapprovedoncethey findoutjusthowmuchtheywentoverbudget. You vehadenoughofthiserpmadnessandarereadytosellyourvisionfore procurementbutknowtheerpdefensewillcomeup.so howdoyoumakeyourcasefore procurement?hereare10reasonswhyyourerpsystemcan tdeliversmarterspendingpracticesor thesavingsthatcomewiththem:

Coupa Software BEWARE ERP: EXPENSE AND REGRET PURCHASING 3 Number 10. No one can figure out how to use it Inanerafordownsizing,rightsizing,doingmorewithless,andwearingmultiplehats,procurementgroupsnolongerhavetheresources tosupporteverypurchasingneedintheorganization.employeesarebecomingincreasinglyresponsibleformanagingtheirown requisitionsandsupplierrelationships,anddon thavethetimeorpatiencetonavigateacomplexsystem,orresearchpoliciesand procedurestopurchaseofficesupplies.ifthesystemisnotintuitiveandeasy to use,youremployeeswillsimplyworkaroundit.let themexpenseit,andyou llregretit! KnowYourUsersandWhatTheyNeed ERPsystemswerebuilttobesophisticatedenterprisesystemsforcertifiedexpertsand professionals.asaprofessionalaccountantorbuyer,youattendsomein depthtraining classes,putonyourthinkingcap,andfigureitout.butifyouareanaverageemployee,it s unacceptablycomplicated. Don triskarevolt(oryourcareer) completewithgraffitiwrittenonthebathroomwalls aboutyourfailedrollout byforcingemployeesintoasystemyouknowistoocomplicated touse!knowyourusers,knowwhattheyarecapableofandgivethemasystemthatlet s themeasilygetwhattheyneedandgetonwiththeirday. GiveThemAmazon.com likeease of use It snocontest;e procurementsolutionsarethehandsdownwinnerwhenitcomestoeaseof use.fromonlinecatalogstosupplierpunch outsites,it sasfamiliaraspurchasing somethingfromyourfavoritewebsite.inaddition,youcansearchforspecificproductsand services,reviewrelevantbuyingpolicies,comparisonshopandviewsupplierratingsand buyerfeedbackmakingitinfinitelyeasiertocompleteyourpurchase. Inmanycases,employeesfindthatane procurementsystemis easiertousethanavoid. Sosaygood byetospendingsurprisesandunapprovedexpensestatements.bygetting employeesto buyin tothesystemanduseit,youmaximizeyouropportunityforsavings andyourabilitytocontrolspendingcompany wide. MakeYourCasefore Procurement Helpthemunderstandhow negativitytowardyourerpsystem willcostyoudearly! Ifyoucan tusethesystem,howonearth doyouexpecteverydayemployeestofigure itout?makeiteasierthanexpense reporting,andwatchadoptiongoup.no onewantstoshelloutfromtheirown pocketandtrackpaperreceiptsifthere sa betterwaytobuy. Whileeveryoneend aroundsthesystem, we llsuffer:decreasedproductivity,lost leveragewithsuppliers,higherprices,and increasednon payrollcostsby15%

Coupa Software BEWARE ERP: EXPENSE AND REGRET PURCHASING 4 Number 9. It is too slow and unproductive FormostemployeesfillingoutapaperformisfasterthansubmittingarequisitionthroughyourERPsystem.What smore,most employeeswouldratherjustgodowntothelocalstore,getwhattheyneedthenandthere,andsubmitanexpensereportlaterto accountforthespend.plus,mosterptoolstake30 45secondstologintoandtonavigatearoundtheendlessmenustotherightform fortherightrequest.nottomentionthetimeittakestoprocess,getapprovalsandactuallyreceivetheitemyouneed.nowonder employeestrytoavoidtheprocessatallcosts. UnderstandthePainsandObstacles Acommonmisconceptionaboutchangingemployeespendhabitsisthatifyoumakethe processdifficultenough,fullofforms,reviews,approvals,tapdancingandhoopjumping, employeeswillnotspendanythingbecauseit sjusttoodarnhard.nottrue.itonly appearsthatyouareachievingresultsbecauseallofyourspendisnotunder management. Butdon tbemistaken employeesarespending,you rejustnotseeingituntilamonth ortwolaterwhentheysubmittheirexpensestatementsandyouarewonderinghowyou wentoverbudgetagain.theyarebuyingoutsideofthesystem,outsideoftheapproved processandoutsideoftheapprovedsuppliersandpre negotiatedprices. EmpowerProductivity Let sfaceit,youremployeeswerenothiredtomanageapurchasingprocessor understandhowyourcomplexerpsystemworks.somakeiteasyforthemtofollowthe process,ortheywillfindaneasierwaytogetwhattheyneedtogetthejobdone MakeYourCasefore Procurement Whattypeofworkenvironment doesyourorganization sleadership want? Doyoureallywantpeopletobespending anhourtryingtofigureouthowtobuya stapler? Canyourisknegativemoralebyforcing employeestojumpthroughtimeconsumingandmindlesshoopsinsteadof doingwhatitistheyarehiredtodo? RatherthanforcingemployeestopurchasethroughaforeignERPsystem,simplify!Use familiarconventions,andusee procurementtoincorporateeverythingtheyneedtocomply withpurchasingguidelines,solicitcompetitivepricing,andprovidetherightinformationfor orderingandbilling. Weoncecountedthenumberofclicks andfieldentriesittooktobuyapencil throughanerp.theanswer?37.

Coupa Software BEWARE ERP: EXPENSE AND REGRET PURCHASING 5 Number 8. It is inconvenient for managers I tcanbearguedthaterpsystemsarereallytheidealtoolformanagers.afterall,itisapowerfuldataandreportingenginewith accesstoeveryconceivablemetricandstatisticneededtomakeinformedbusinessdecisions.it ssophisticated,it sexpensive,andit s completelyinconvenientformanagerstouse! Today smanagersarefirefighters,handlingescalatingprioritiesanddealingwiththeproblemdujour.thoughconnected24x7 throughtheiriphonesandblackberries,theystillcan tgettheiremailbacklogunder100.thelastthingtheyneedisyetanother systemtoaccess,anotheradministrativetasktoremember,andanotherprocesstoadaptto. Yourmanagersarebusyenough Flexibilityisessentialforsuccessfulmanagerswhoarejugglingmultiplepriorities,projects, employeesandmeetings.andunfortunatelyerpsystemsoftenrequiremanagersto approvepurchasesonlythroughthesystemandinaveryparticularway.theproblemis, it srarelyaconvenienttimeformanagerstodropwhattheyaredoingtologintotheerp systemtoprocessrequests. ForcingmanagerstousearigidERPsystemtoapprovepurchasesandmanagespendwill onlycausefrustration,dissatisfaction,andpeopleultimatelygoingaroundtheprocess. Andbeforeyouknowit,yourmanagershavelostallspendcontrolandvisibility alose/ losesituationforeveryone. Therighttoolsmakeallthedifference Effectivespendcontrolmeansspeedyandefficientreviewanddispositionofspending requests.otherwise,youriskdelaysandbureaucracythatslowdownthebusiness.butto maintainthiscontrol,youmustprovideemployeeswiththetoolsthatworkwithhowthey workandnotonesthatforcethemintoarigidconstruct.that swherethevalueofeprocurementcomesin. MakeYourCasefore Procurement ExplainwhyERPsoftwarelets managersdown! Peoplewon taskpermissionbeforethey buyunlessapprovalshappenfast Managersdeservetheconvenienceof approvingstraightfromemailormobile phone Onaverage,youshouldbeabletocomplete theapprovalprocessinunder12hoursvs. thetypical2 3weeksrequiredtocomplete theapprovalcycleinerpprocurement modules Withane procurementplatform,managerscaneasilystayontopofspendrequestsandbudgetsthroughemailalertsandevenapprove orprovidefeedbackonrequisitionsstraightfromtheiremail,blackberry,iphoneorothermobiledevice.

Coupa Software BEWARE ERP: EXPENSE AND REGRET PURCHASING 6 Number 7. It can t prevent over-spending WhenyourERPpackagewasfirstimplemented,thereisnodoubteveryoneintheorganizationhadthebestofintentionsandthe hopethatitreallywouldsolvealltheproblemsyouthoughtitwould.andwhileithasdeliveredonthepromiseofmanaging informationandpossiblyenforcingsomepoliciesandprocedures,nowthatthesolutionisdeployedyouhavediscovereditsabilityto helpmanagespendandpreventoff contract,wasteful,maverickspendingleavesmuchtobedesired. ERPdeliversbadspendingnewsonlyonceit stoolate MakeYourCasefore Procurement Everyquarter,theaccountingdepartmentperformsa close andrunsreportsfromthe ERPsystemtoseewhathappened.Didweover spendcomparedtoourgoals?toooften, theanswerisyes.butyourerpsystemcan tpreventover spending itsimplyreportsit. Findingoutthatyouoverspent,twoorthreemonthsafterthespendhasoccurreddoes verylittletohelptheorganization.youhavenoopportunitytocoursecorrect,nowayof knowingwhenyouapprovedthat$10,000purchasethatyoujustpushedyourspend $8,000intothered.Themoneyhasalreadybeenspentandthereisverylittlechancefor youtorecoverthatspendonceithappens.andthat swhyyoudeservebetter! e Procurementwarnsyouaheadoftimesoyoucanact! Helpthemseethefuturesoyoucan shapeit! Wouldn twerunthebusinessbetterifwe couldaccuratelyforecastnon payroll spend? Shouldn twebesettingspecificspending targetsforourbusinessandtrackingagainst thosetargetstomaintainmargins? Imagineifyouknewinreal timethatyouweredangerouslyclosetobeingoverbudgetand approvingthosenextprojectswasgoingtoputyou$25kover,wouldyoudosomething aboutit?wouldyoudelaytheotherthreeprojectsorfindamorecosteffectivewaytoconducttheprojects?absolutelyyouwould! Withe procurement,youcantrackspendingagainsttargetsinreal timeandevenbealertedwhenspendreachescertainlevels.since youhavetheinformationyouneedwhenyouneedittomakethebestspenddecisionspossible,youareabletocoursecorrect,delay additionalexpensesandultimatelysavethecompanymoney. Inaddition,youhaveaviewintorecentspendingpatternsandpredictorforecastwherespendingwillfallfortheremainingmonths allowingyoutobepreparedandplanforlonger termspendandsaveinitiatives.

Coupa Software BEWARE ERP: EXPENSE AND REGRET PURCHASING 7 Number 6. It promotes a bureaucratic work environment It snosecret whengiventheoptionpeoplewilltakethepathofleastresistanceeverytime.whowantstospendthetimejumping throughhoops,fillingoutforms,chasingdownapprovalsandcallingpurchasingeveryotherdaytoseeiftheiritemhasbeenordered andwhenitwillarrive.whydoallofthatwhenyoucansimplygotoaretailstore,instantlypurchasewhatyouneedandjust expenseitlater?butthisisexactlywhatemployeestendtodowhentheyareforcedtopurchasethroughacomplicatederpsystem, makingitimpossibletoeffectivelymanageandcontrolspend. Employeeswanttodoitthemselves,butareblockedateveryturn Theinternethasremovedtheboundariesofbusiness.NowasmallbusinessinGeorgia cansupplypeachpreservestoaparisiancafé.thereisincreasedcompetition,improved globalinfrastructureandacompletelynewwayofdoingbusiness.companiesthatwill survivemustbeabletoadaptandusethefullpotentialoftheonlineworldtooperate moreefficiently. ERPsystems,howeverhavefailedtomoveintothe21 st century.theycontinuetocopy 20 th centurybusinessprocesseswhereinformationwasplacedinsilosandaccessible onlyto thosewhoneedtoknow. Thismeansthatwheneveranemployeewantsto createorcheckonthestatusofarequisitionorpurchaseorder,theyhavetorelyon phoneandemailtocontactthoseintheknowtofindouttheinformationtheyneed. Notonlyisthismethodinefficientandtime consuming,italsocausesincreasing frustrationanddisruptionforyourpurchasingteamandemployees. Helpemployeeshelpthemselves MaketheCasefore Procurement Getthemtounderstandthe difference! Wouldn twebebetteroffgetting employees helpinunderstandingthewho, what,when,andwhyoforderingandhow togetthingsdonewithgreaterefficiency? Shouldn tourdedicatedpurchasing professionalsbemaximizingtheirtimeon negotiatinggreatdealsandsteering purchasingpoliciesvs.re keyingordersand answeringstatusquestions? Thenewgenerationofemployeeshaveneverbeenwithoutacomputer.Theirlivesare onlineandthelinesbetweentheirpersonalandprofessionalslivesarestartingtoblur.theyknowhowtoshoponline.theyknowhow tolookforagooddealbutareunabletousethatskillforthecompany sbenefit.witharchaictechnologieslikemosterppackages, employees handsaretied.theyareoftenpowerlesstomakeapositivecontributiontotheorganization. Ane procurementplatformempowersemployeeswiththeinformationtheyneed fromreal timeapprovalstatustoadirectcopyof issuedpo stobeingabletoratesuppliersonthequalityofthegoodsandservicesreceived toeffectivelymanagetheirpurchasesand completetheirday to daytasks.

Coupa Software BEWARE ERP: EXPENSE AND REGRET PURCHASING 8 Number 5. It isolates you from the outside world YourmostrecentERPreportsshowthatyouwereabletoshave3.5%offyourquarterlyspendandyouthink notbad,saving somethingisbetterthansavingnothing.andmaybeitis,butwhatiftherewasthepotentialtosaveevenmore? WithyourERPsystem,yourviewoftheworldislimited.Youcanonlycompareyourperformanceagainstyourhistoricaldataandall thatwilltellyouishowyouaredoingbasedonpastperformance.whatitdoesnotprovideisinsightintowhetherornotyour performanceisinlinewiththemarket,whichisessentialinordertogetaleguponthecompetition. Howdoyouknowifyouaredoingagoodjob? Youknowwhybenchmarkdatacoststhousandsofdollarstoacquire?Becauseitis difficulttogetandwhenyouhaveitthevalueitprovidesisimmeasurable.gettingan insideglimpseofthecompetitionprovidesyouthecriticalinformationnecessaryfor strategicplanningandbeingabletostayaheadofthemarket. MakeYourCasefore Procurement Helpthemunderstandgreat procurementisaboutmorethan guessing! WhenyourERPpackageishostedonyourdedicatedserverswithonlyyourinformation, youareisolatedandalone.youareunabletoknowwhetheryourprocurementpractices arecompetitiveorlagging.sohowcanyoubeexpectedtotaketherightactionsthatwill delivergreaterefficiencyandsavingsforyourbusiness? Youneedtocompareyourorganization sperformancetothemarket! Howwillwesetaggressiveyetattainable improvementgoals? Wouldn tyouliketousemarket comparisonswherewearelaggingto motivatetheorganizationtochange? OneofthebiggestbenefitsofaSaaSprocurementsolutionisthatthereisasingular platformthatalltransactionsareprocessedthrough.andwhiletheplatformstillkeeps dataseparateandsecure,havingacentralizedsystemstandardizesthewaydataiscollectedandprovidesawaytoeasilybenchmark performancemetrics. Thisaggregatedinformationempowersyoutoconstantlyassessimprovementopportunitiesbybenchmarkingyourprocurement processesagainstthemarketaverage.byknowinghowyoucompare,youcanquicklysetgoalsandtargetparticularpartsofyour procurementprocessforimmediateimprovement.

Coupa Software BEWARE ERP: EXPENSE AND REGRET PURCHASING 9 Number 4. It blocks employees from saving money Withtheonsetoftheinternetandnewtechnologies,globalcompetitionhasexplodedleadingtotherapiddevelopmentandrelease ofnewproductsandservices drivingpricesdownandincreasingtheopportunitytofindabetterdeal.pricescanchangeweekly, andinsomecasesevendaily.itwouldbeimpossibleforanypurchasingorganizationtokeepupwiththesepricefluctuationsfor everycategoryofspend.andbeinglockedintoasix,nineortwelve monthcontractwillnotincreaseyourchancestotakeadvantage ofloweravailablepricesandthesavingsyoucouldachieve. ERPande Commercedon tmix MakeYourCasefore Procurement Beforeeverysupplierontheplanethadawebstoreandeverybodystartedshopping online,thewaytobuysomethingwastopagethroughathickcatalog,findtheitemsyou need,filloutyourorderformwithallthethingsyouneeded,gettheorderapprovedand faxitovertothesupplierforfulfillment. ERPsystemsarejustastepupfromthisancientwayofdoingbusiness.Sure,youcanuse yourerpsolutiontomaintainalistof ApprovedSuppliers fordifferentcommodities. Youcouldeveninputcontractsforitemsatpreferredpricing.Butforcategorieswhere productsandpriceschangequicklyyouneedadifferentapproach!that sespeciallytrue inthisknowledgeeconomy,whichisincreasinglycharacterizedbyservicesbusinessesand indirectspending. Empoweremployeestofindsavingsopportunities Thereareafewcategoriesofspendwhereyourepeatedlyorderthesameitemstimeand again,andpricesfluctuatelittle centralizedpurchasingcontractswithpreferredpricingmakessenseforthosetypesofexpenditures (likepartsforanassemblylineorsuppliesfortheoffice).butmoreandmore,whatemployeesneedwillchangeday to daydepending onanorganization sshortandlong termgoalsandobjectives. e Procurementgoesbeyondthetime honored approvedsupplier mentalitytoleveragecrowdsourcingtofindthebestdeals.witha crowdsourcingapproach,youremployees doatworkwhattheydoathome.theyshoparound.theycheckoutavarietyofvendors. Theyfindbargainsanddealsthatyourpurchasingteamisn texposedtoandtheypurchaseatthelowestprice.andthebestpart,you re stillincontrolandyou respendisstillundermanagement,allwhilesavingfarmoremoneyandstayingontopofthemarket. Givethemexamplestheyknoware true! Howmanytimeshaveyoupersonallyfound dealsonlinethatwerewaybetterthanan oldcontractprice? Sneakuponthem:didyouseethat fantasticdealonoverstock?nowaywe re savingthatkindofmoneywhenpurchasing throughourerppackage!

Coupa Software BEWARE ERP: EXPENSE AND REGRET PURCHASING 10 Number 3. Your suppliers hate it too! Youcanprobablythinkofahundredbetterusesofyourtimethanduplicatingefforts,rekeyinginformationandpushingpaper.Guess what,socanyoursuppliers.themoretimethattheyhavetospendmanuallyprocessingpaperwork,thelesstimetheyhavetospend onstrategicinitiativesthatwillultimatelyprovideyouwithbetterproductsandservices.notonlythat,butthemoreresourcesthey needtodedicatetomanualtasks,themoreyouwillenduppaying. YourERPsystemmakesyouacostliercustomer Asageneralrule,themorehandsthathavetotouchaproductorserviceinorderto deliverittoanendcustomer,thehigherthecost.sowhenyoursuppliershaveto manuallyre keyeverypoyousendbecauseyouareusinganerpsolutionthatdoesnot allowyoutoautomaticallytransmittheinformationtheyneedtofulfillyourrequest,how doyouthinktheyrecoupthosecosts? MaketheCasefore Procurement HelpconnectthedotsbetweenERP software,thepurchasingor procurementorganization,andpoor supplierrelations Chancesarethoseadditionalcostsarebeingpassedontoyou.Andasyourpurchasing teamisnegotiatingnewcontractsandmorepreferablepricingtodeliversavings,theyare findingitismuchmoredifficulttogetthepricedownifworkingwithyouisinefficient, complicatedandrequiresalotofhighoverheadresources. Youwantsupplierstolovedoingbusinesswithyou Withe procurement,supplierscanelectronicallyreceiveordersandsubmitinvoices.no needformanualre keying,highvolumesofphonecallsorfaxes.usinganout of the box APIconnectororsomesimpleXMLyoucaneasilyenabletheseefficienciesandtake advantageofthesavingstheybring. Aren twetiredoflostordersandcrisis phonecallswithsuppliers? Wouldn titbebetterifsupplierscould receiveorderselectronicallyandavoidany re keyingmistakesintheirorder managementsystem? Don twedestroyourleverageincontract negotiationswhenweregularlypaylatedue todocumentationandprocessproblems? Inaddition,manye procurementsolutionsprovideawaytotapintosuppliernetworks whereyoucanfurtherimproveyourabilitytoworkseamlesslywithyoursuppliers. Throughthesenetworkssupplierscanaccessanonlineportalwheretheycanmaintaintheircontactinformation,publishcontractitems andpricestoyou,andevenconnecttheironlinestore.

Coupa Software BEWARE ERP: EXPENSE AND REGRET PURCHASING 11 Number 2. It is completely stagnant WhenERPsoftwarefirstburstontothesceneitssingularpurposewastoorganize,manageandreportonlargevolumesofdatafor planningpurposes.andthroughtheyearsasnewtechnologieshavebeenreleasedandoldertechnologieshavereceivedafacelift andbeenenhancedtomeetchangingbusinessneeds,erpsystemshaveessentiallystayedthesame.ithasn tgottenanyeasierto usenorhasittrulyexpandeditsabilitytohandleotherfunctionssuchaspurchasing.sowhilemarketingmightrepackageyourerp system scapabilitiestoseeminglyaddressaspecificneedlikerequisitioningorinvoicing,it sessentiallyjustlayeringadifferentuion topofanout dated,archaicerptechnology. Assolidasastone,andasunchanging Accountingisatrickybusinessandonethatreliesonaccuracyandconsistencytobe effective.onceyou vebuiltasystemthatbalancescreditsanddebitscorrectly,it sbest toleaveitalone.andthat spreciselywhaterpvendorsdo. EveryfewyearsyourERPvendorwillreachouttoyouaboutupgradingyoursystem.And whileinmanyothersoftwareapplicationsthatmightmeanaddingnewfeatures,enhance existingcapabilitiesorevenmaketheuiabitmoreuserfriendly.butintheworldoferp theseupgradestypicallyconsistofbugfixesandnotmuchelse. Howwebuyischanging,andyouneedasystemthatadapts Ifonethingisclearintoday s new economyit sthis,businessasusualisnolonger businessasusual.technologyhasdramaticallychangedthewaywedoeverything,from howwecommunicatewithoneanothertohowwegettheinformationweneedtohow wegetthegoodsandserviceswewant. MakeYourCasefore Procurement Haveanhonestconversationabout thepurchasingcapabilitiesofyour ERPsystem Whenwasitlastupdatedwithanew featureyoucaredabout? Howdifferentwasthesystem3yearsago? Howhasittransformedyourbusiness? e Procurementcontinuouslyadaptstomodernbusinesspracticesandchallenges.Andit sdeliveredasahostedsolutionviasaas,you arealwaysup to datewiththelatestinnovationse procurementhastoofferwithouttheneedofgettingyourupgradeonyourit department scalendarsincee procurementdoesnotrequireanyhardwaretomaintainorsoftwaretoinstall.

Coupa Software BEWARE ERP: EXPENSE AND REGRET PURCHASING 12 Number 1. It is built for accountants, not procurement Let sbeclear,erpsoftwaredoeshaveitsplaceinanorganization;it sjustnotinpurchasing.erp sstrengths managinglarge quantitiesofinformationandtransactionsandpullingsophisticatedreportsandtrends makeitanidealsolutionforfinance.just likeyouwouldn tuseaspreadsheettobuildyourwebsite,youshouldn tuseerpsoftwaretomanageyourprocure to payprocess. It snotwhatyourerppackagewasdesignedtodo,anddoesnotprovideyoutherightfoundationtoempowersmarterspendingand long termcompanysavings. ERPpurchasingisaboutcheckingabox ERPvendorshavetoofferallsortsofmodulestowinbusiness.Theyhavesalesforce automationmodules,marketingmodules,hrmodules,andevenprocurementmodules. However,thosemodulesarerarelythereasonanyonepurchasesERPsoftware they aren tcompetitiveandneverwillbe.andaslongasanerpsalespersoncan checkthe box andsaytheydoprocurement,they refine. Butwhyleavesomethingasimportantasmanagingpurchasesandsavingyourcompany moneytoasimplecheckboxonalongorderform?don tyouandyourcompany deservesomethingbetter;somethingguaranteedtogetyouontherighttracktosmarter spendingandsavings? Transformingprocurementrequiresabest in classplatform Procurementleadershaveambitiousgoalsthatincludesustainablemulti yearsavings. Andwhenprocurementsucceeds,businessesthrive,plainandsimple.Butwhenyouare buildingyourprocessesuponthewrongfoundation,itishardtotransformyour procurementeffortsintosomethingthatwillhaveasubstantialandsustainableimpact onyourbusiness. MaketheCasefore Procurement Helptheorganizationavoidbeing penny wise,pound foolish Lookforexamplesinotherareas(i.e.HR, CRM,etc.)wherethecompanyhasmoved beyonderpsoftwaretobest in class solutions highlightthoseareasanddraw parallels Askyourselfwhatyouwanttoaccomplish fortheorganizationoverthenext1 2 yearsandwhetheryou rewillingtorisk yourreputationandcareeronyour second rateerppurchasingmodule Organizeapilot/bake offbetweencoupa andyourerppurchasingmoduleand generateachorusofcohorts UnlikeERP,e Procurementsystemsaredevelopedwithonegoalinmind:makeiteasy forthecompanytocontrolspendandsave.that sit.everyfeatureandfunction,fromthewayyouworkwithsupplierstohowyoubuy togetthebestpricespossible,arealldesignedtodeliversavingsforthecompany.sowhynotinvestintherightplatformfromthestart andreallyseewhereyourprocurementeffortscantakeyou.

Coupa Software BEWARE ERP: EXPENSE AND REGRET PURCHASING 13 Summary Inthise bookwehavecomparedandcontrastedmanyofthedifferencesbetweenmanagingyourprocure to payprocessthroughyour ERP spurchasingmoduleandusinge procurement.wehavetalkedaboutwhereerpsystemswork(i.e.accounting)andhowthereare manynuancesofpurchasing(liketheabilitytocrowdsourcebetterpricesandgreatersavings;ortrue,market widebenchmarking)that itgenerallydoesnotaddress.butifthereisonlyonethingyoushouldtakeawayfromthise book,it sthis: ERPsystemsweredesignedtoorganize,manageandreportonmassquantitiesofinformation nottoempowersmarter spendingandsavings.ifyouareseriousaboutsavings,youneedtoseriouslyconsidere procurement. So,nomatterhowmanymodulesyourERPvendoroffers,orallthecompellingargumentsyouhearfromthevendor(andmaybeeven youritdepartment)onwhyyoushould standardize onthem,bewary!erpisthewolfinsheep sclothingwhenitcomestohow companiesmanagetheirpurchasing.whileitmightlooklikeapurchasingsystemandtheymightsayit sapurchasingsystem,itismost certainlynotthepurchasingplatformyouneedtopracticethetypeofsmarterspendingthatwillhavearealimpactonyourbusiness. Learn More ERP&ProcurementSystems InsideERP:MidmarketERPSolution ComparisonGuide SourcingInnovation:WhatisaSuccessful ERPImplementation? ESourcingForum:TheAgeofthee Perp SpendMatters:IsSaaSReallyCheaper thanon Premise?Maybe,MaybeNot... CoupaTCOCalculator:ComparetheCost ofon Demandvs.On Premise Procurement CompareCoupatotheCompetition Ariba BellwetherCorp ExpenseWatch Ketera Sciquest ExperienceCoupaFirstHand CoupaInnovations CustomerTestimonials OnlineDemoLibrary YourFreeTrial

Coupa Software BEWARE ERP: EXPENSE AND REGRET PURCHASING 14 About Coupa Software Coupaistheleadingon demandproviderofsolutionsthatcontrolandstreamlinepurchasingfororganizationsbeyondthefortune500. Coupae Procurementdeliversaneasytouse,fasttodeployandaffordablesolutionforrequisitioning,purchaseorders,RFQs,inventory andinvoicing,withnohardwaretobuyorsoftwaretolicense.withdeepdomainknowledgeine procurement,abest in classsoftwareas a serviceplatform,anetworkofmorethan2,300suppliers,andafast growingcommunityofcustomers,coupaenablessmarter spendingpracticesthatallowcompaniestosavemoneyquickly.formoreinformationpleasevisit,http://www.coupa.comorcall +1.650.931.3200.