Why Current SCM?

On one end of the spectrum, there are typical operational buys – like restocking office supplies from a regular supplier (indirect procurement). This might include pens, paper, or even a new office chair. Perhaps the business visits the supplier in-person or perhaps they make the purchase online and enjoy the convenience of same-day delivery. 

It’s a simple task typically involving a single person that had been managed effectively by spreadsheets for decades, and now lends itself well to being managed by an organization’s off-the-shelf Enterprise Resource Planning (ERP) software or by one of the many Procure-to-Pay software solutions on the market.

A routine task suited for generic tools.

At the opposite end of the spectrum, there are purchases of highly technical goods or services, often directly linked to manufacturing (direct procurement) or to complex construction projects. These goods or services are typically sourced globally, purchased at scale, bound to strict schedules, and often subject to rigorous regulatory scrutiny.

It’s a complex process involving collaboration among a group of professionals with different specializations, such as Project Managers, Engineers, Buyers, and Expeditors. And often, the organization leading the procurement is acting as an agent on behalf of another organization that is responsible for invoice payment.

A complex process that demands specialized tools.