ERP/MRP System implementations and administration Category Procurement Intelligence Report

The market for IT Management and Change and its sub-segments such as ERP/MRP System implementations and administration are at an interesting intersection. Buyers are showing an inclination to onboard suppliers whose offerings span beyond ERP/MRP System implementations and administration. The practice brings in several advantages such as rationalization of supplier base, economies of scale and reduced category management cost.

Stringency in the regulatory norms pertaining to data protection and cybersecurity has increased compliance and security burden on suppliers. These additional costs have a potential to drive marginal increase in prices across the key geographies.

The supply market has undergone several structural changes including introduction of several new vendors every year, M&As and vertical integration efforts of suppliers. This has resulted in some issues such as erosion of previously established supplier relationships but has also opened new opportunities to onboard new suppliers that offer a solution with better fitment or a wider range of offerings in .

Trends like these and many others discussed in this report are necessitating a relook at the way ERP/MRP System implementations and administration is procured and the procurement cost saving opportunities that exist.

ERP/MRP System implementations and administration procurement best practices are moving towards a level of sophistication which is typically seen in traditional procurement categories. Category managers now have an attractive opportunity to adapt the best practices seen within this category as well as those being leveraged in other non-related categories. This report summarizes the best practices picked from across multiple categories that could work well for category managers involved with ERP/MRP System implementations and administration procurement strategy.

For example, Category managers must explore opportunities to integrate planning and management activities using analytics to gain better control over category spend. This will also allow them to consolidate supply base easily as well as segment service providers depending on requirements and spend on each service provider.

Buyers must clearly define clauses pertaining to the ownership of subcontracting services that are not a part of preferred suppliers' portfolios. Subcontractors should be bound by the same terms and conditions as the main contractor to ensure consistency in quality and manage any adverse event such as data breach.

Developing a strong understanding of the potential vulnerabilities of service providers can help buyers limit their potential losses and also gives the bargaining power to demand services from more robust measures in the SLA.

ERP/MRP System implementations and administration procurement managers also need to proactively identify and mitigate potential risks that can arise in the supply chain or contracts for ERP/MRP System implementations and administration procurement. Some examples include: