Although most manufacturing organizations would prefer to use their ERP systems to automate sourcing processes, many are increasing their investments in best-of-breed sourcing software products that offer greater functionality, according to a recent report from AMR Research.
Today, half of organizations use their ERP systems for sourcing, and half use best-of-breed systems, such as those provided by Ariba, Ketera, and Emptoris, according to the report by AMR Research Director Mickey North Rizza, But many manufacturers, particularly in Europe, are increasing their investments in best-of-breed sourcing systems, at least in the short term, the report adds.
"The message is clear," the report says. "ERP vendors need to provide superior sourcing products with more frequent updates to capture and keep their customers."
In many cases, AMR Research found, organizations find sourcing systems that are part of ERP suites to be more complex to configure and use than best-of-breed sourcing systems. At the same time, best-of-breed systems generally provide richer functionality.