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It includes sourcing and supplier management, contractmanagement, and procure-to-pay (P2P) functions. A well-executed S2P strategy reduces costs, increases visibility, and ensures compliance. Key elements include total cost of ownership (TCO) analysis, supplier relationship management, and category management.
Total Cost of Ownership, ERP appears to be cheaper, but is it? In addition to all of these benefits, the total cost of ownership of an ERP-based solution is higher. It seems that the era of best-in-class supplychain solutions has arrived. Best-in-Class Beats Single-Stack.
20152020: Procurement Gains Strategic Recognition Emergence of Strategic Sourcing : CFOs began to recognize procurement’s role in driving long-term value through strategic sourcing, supplier relationships, and risk management. Emphasis shifted from pure cost savings to total cost of ownership (TCO) and value creation.
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