eProcurement has been around for a couple of decades now. It is alive and well and has cemented itself as a permanent fixture in the procurement function.
However, if you aren’t seeing it mentioned as much, that doesn’t mean it’s not as important. Over the years, terminology and where eProcurement fits in a tech roadmap has changed. So, let’s unpack the solution types that include eProcurement.
- Procure-to-Pay Solutions. “Procure-to-pay” is essentially synonymous with “eProcurement.” It refers to a software that allows end users to find products and services offered by approved suppliers at contracted pricing and to purchase them via an experience that replicates a consumer shopping experience. Unlike early eProcurement systems, almost all of today’s procure-to-pay systems can be used by accounts payable personnel to remit payment to suppliers.
- Source-to-Pay Solutions. Source-to-pay solutions are software offerings that seamlessly combine procure-to-pay solutions with the capabilities of integrated eSourcing capabilities.
- Procurement Platforms. Over the past 10 years or so, many software providers have merged and been acquired. This has resulted in a handful of software companies being able to offer virtually every type of procurement software available: spend analysis, contract management, eSourcing, procure-to-pay, savings tracking, supplier management and more. While they may offer these solutions on a stand-alone basis, they also offer them as one integrated bundle called a “procurement platform.” For ambitious procurement organizations who want to leverage technology in every aspect of what they do, using a procurement platform is an attractive alternative to licensing each type of solution separately from different providers whose solutions may not integrate well – or at all – with each other.
While eProcurement may not be as discussed as it once was, it’s still an important piece of today’s procurement tech.
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