Procurement of Enterprise Systems

SAP and Centralized Procurement

Today, SAP offers various solutions necessary for the management of a centralized procurement system by an enterprise. SAP is one of the most creative products for the modern business. I chose the Sourcing feature In their supply chains, most businesses pursue productivity and thus externalization is an integral component of their activities (SCRC, 2011). The main benefit is that it helps the business to focus on its core operations, thereby increasing performance and competitiveness and lowering costs at the same time. The main its advantage would be a significant reduction in costs. Strategic outsourcing would allow the company to accrue other benefits, such as access to skilled expertise, flexible staffing, and enhanced efficiency. Ultimately, the company would reduce turnaround that would enable it to generate more profits.

Benefits of the Enterprise Model

The enterprise model would be useful to my organization because it enables the company to reduce overhead and allow the company to access the latest technology in the industry (Kamath & Saurav, 2016). In this regard, the company would save on technology and infrastructure and improve time zone advantage. Hence, the company would gain a competitive edge that would enable it to remain relevant in an increasingly competitive environment.

Strategic Outsourcing for Competitive Advantage

My organization currently has one because it appreciates the dynamics of the industry. Organizations that wish to achieve their strategic business goals ought to study the industry and establish the core advantages they could reap. After doing so, the management singled out outsourcing as one of the strategic moves the company could make to compete favorably. The people that run it understand the importance of compliance and security, appreciate the inherent risks, and recognize the need to level the playing field. Hence, the company has taken advantage of the module adequately.

References

Kamath, N., & Saurav, S. (2016). Handbook of research on strategic supply chain management in the retail industry. Hershey: Business Science Reference.

Supply Chain Resource Cooperation. (2011). The role of Procurement within an Organization: Procurement: A Tutorial. Retrieved on June 14, 2017 from https://scm.ncsu.edu/scm-articles/article/role-of-procurement-within-an-organization-procurement-a-tutorial