Globalization has presented a great number of opportunities to procurement groups:
- Access to a lower-cost supply base
- Expansion into new markets
- Greater optionality in the supply chain
It has also created some challenges:
- Doing business in a variety of languages and currencies
- Managing compliance
- Controlling geopolitical risks
Organizations make two common mistakes related to globalization:
- They assume that everything can be done the same way in every part of the world, which is not true. Deploying a systems or process blueprint that can be implemented locally yet monitored centrally or globally is a great strategy for avoiding this mistake.
- They going to a single global instance of their core business system to implement standardization. Most companies that have employed this rip-and-replace strategy have found that the cost overruns and it takes much longer to achieve benefits than they had anticipated.
Perfect Commerce has helped companies deploy systems or processes on top of their existing enterprise resource planning (ERP) systems, enabling connection and communication among disparate systems while allowing people to manage their functionality globally. These cloud-based procurement systems can be deployed quickly and at a fraction of the cost of an ERP system.