An ERP stands for Enterprise Resource Planning system. It is used to manage business processes that are designed to enhance operations that connect many aspects of the company. Typically, the objective is to combine operations, like planning, finance, supply chain management, HR, inventory management and CRM into a single integrated system. However, when it comes to procurement management, ERPs provide only limited transactional purchasing capabilities and very basic capabilities for upstream activities such as sourcing and contract management.
On the contrary, an e-procurement system is designed to meet organizations’ procurement needs. It consists of in-depth features for managing sourcing, spend analytics, supplier management, and contract management that are integrated to make a single comprehensive solution. An e-procurement software allows users to gain total control and visibility over sourcing operations and demands. It assists in identifying cost-cutting possibilities and adopting a strategic approach for managing procurement. In other words, an eProcurement system complements your ERP and helps enhance the buying process.
