Growing procurement challenges confront many companies with one question: Is an ERP system still enough? Manual processes, a lack of transparency, and rising compliance requirements make it clear that conventional systems are reaching their limits. Mid-market manufacturers in particular need flexible, data-driven solutions to manage suppliers efficiently and identify risks early.

Watch our webinar to learn how NEDSCHROEF transforms its procurement with an SRM tool from Tacto, automates processes, and creates a 360° view of its suppliers.

In today's procurement landscape, ERP systems are increasingly reaching their limits. They are indispensable for operational processes, but when it comes to strategic supplier management, risk assessments, or compliance, they are often too rigid. A supplier relationship management (SRM) tool can close a critical gap here. Catharina Golz (Global Procurement Director at NEDSCHROEF) and Julius Reinboth (Customer Development at Tacto) show what this looks like in practice.

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The Starting Point: Why an ERP System Is Not Enough

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Like many companies, NEDSCHROEF faced the challenge of managing a large number of suppliers efficiently. The company operates 26 sites in 12 countries and works with several ERP systems in parallel. The consequences:

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• Manual processes dominated procurement, from Excel lists to countless email threads.

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• Compliance requirements such as the German Supply Chain Due Diligence Act (LkSG) made transparent, centralized documentation indispensable.

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• No central data foundation existed for supplier evaluations, certificate management, or performance analyses, which made informed decisions difficult.

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These challenges made a transformation of the procurement processes necessary.

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ERP vs. SRM: Two Systems, One Goal – Efficient Procurement

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To understand why an SRM tool has become indispensable for companies like NEDSCHROEF, it is worth taking a closer look at the differences between an ERP system and an SRM system, as well as their interfaces. Both systems play a central role in the procurement process, but they serve different purposes and complement each other perfectly.

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What Is an ERP System?

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An enterprise resource planning (ERP) system is a central software solution that maps all of a company's business processes. It serves as the data foundation for all operational processes, particularly in the areas of:

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• Financial accounting and reporting
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• Materials management and warehouse management
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• Production planning and logistics
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• Human resources

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In procurement, ERP systems are primarily used for order processing, invoice processing, and master data maintenance. They ensure that suppliers are created, orders are placed, and goods receipts are posted.

However, ERP systems often reach their limits when it comes to strategic procurement processes. While they excel at transaction processing, they often lack:

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• Detailed supplier evaluations and development capabilities
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• Automated workflows for compliance and risk management
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• Dynamic analyses and reports on supplier performance

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This is where the SRM system comes into play.

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What Is an SRM System?

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A supplier relationship management (SRM) system is specialized software for strategic supplier management. While the ERP system focuses on operational processes, the SRM tool helps manage supplier relationships and optimize them over the long term.

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The main functions of an SRM system include:

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• Supplier evaluation: Automated performance analyses based on quality, delivery, and risk data

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• Risk management: Early identification and prevention of supply bottlenecks or compliance violations

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• Certificate and document management: Automatic tracking and renewal of supplier certificates

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• Supplier development: Measures to improve performance and build strategic partnerships

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• 360° view of suppliers: Centralized data for fact-based decision-making

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How Do ERP and SRM Complement Each Other?

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ERP and SRM systems should not be viewed as competitors but as two complementary tools. In an ideal procurement strategy, the ERP system handles operational execution, while the SRM system enables strategic management of supplier relationships.

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The Move to an SRM Tool: A Strategic Decision

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To compensate for the limits of its ERP system, NEDSCHROEF decided to introduce an SRM system from Tacto. The company deliberately chose a tool that integrates seamlessly into the existing system landscape without the high implementation effort of an additional ERP module.

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The advantages of an SRM tool over ERP systems are clear:

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• End-to-end supplier transparency: While ERP systems primarily manage operational transaction data, an SRM system offers a 360° view of suppliers, including certificates, credit checks, and compliance status.

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• Automated workflows: Supplier evaluations, certificate checks, and risk management are no longer handled manually but run in a standardized way through the tool.

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• Flexibility and user-friendliness: New suppliers can be created easily, information can be updated in a few clicks, and custom analyses can be run.

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The implementation took just six weeks – a remarkably fast rollout for a company of this size.

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Concrete Use Cases: How NEDSCHROEF Benefits from SRM

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1. Supplier Evaluation: Uniform Criteria for Better Decisions

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Before the SRM tool was introduced, supplier evaluations were carried out decentrally, varying by site – usually in Excel. As a result, suppliers were evaluated differently across sites, and a transparent overview was missing.

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With the new system, NEDSCHROEF has:

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• ‍Introduced standardized evaluation criteria for all suppliers.

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• Created automated data queries on performance and compliance.

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• Established a central archive for certificates and audit results, making it easier to demonstrate IATF and ISO certifications.

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Especially in the automotive industry, where strict quality standards apply, transparent and traceable evaluation is crucial.

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2. Supplier Meetings: Efficient Preparation Through Centralized Data

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Another problem was preparing for supplier meetings. Before the SRM tool was introduced, procurement leads had to gather information from various systems and emails.

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Now all relevant information – from spend data and past evaluations to ongoing action plans – is available in a single platform. This saves time while also raising the quality of the conversations, because decisions are based on data rather than gut feeling.

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Tips for Successfully Introducing an SRM Tool

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NEDSCHROEF's experience shows that introducing an SRM tool is not only a technical challenge but above all an organizational one. The decisive success factors were:

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1. Internal communication: Involve employees early and communicate the benefits clearly.

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2. Step-by-step implementation: Start with a clear focus (e.g., supplier evaluation) and roll out the tool gradually.

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3. Regular training: Weekly training sessions were offered to increase adoption.

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4. Leadership as the driver: Management support was essential to drive the change forward.

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Conclusion & Outlook: SRM as the Key to Future-Proof Procurement

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The introduction of an SRM tool at NEDSCHROEF has shown that an ERP system alone is not enough to make procurement future-proof. With Tacto, the company automated processes, made data more transparent, and optimized collaboration across sites.

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For companies still struggling with manual processes or finding it difficult to meet compliance requirements efficiently, an SRM tool can be a decisive investment in the future.

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The digitalization of procurement continues to accelerate. Topics such as AI for risk analysis, automated sustainability assessments, and predictive analytics are playing an increasingly important role. Companies that invest early in flexible, data-driven systems gain a lasting advantage.

In the live webinar "When the ERP System Reaches Its Limits: Why NEDSCHROEF Needs an SRM Tool in Procurement," Catharina Golz (Global Procurement Director at NEDSCHROEF) and Julius Reinboth (Customer Development at Tacto) share hands-on insights into why an SRM tool is an essential strategic complement to ERP systems – helping standardize supplier evaluations, meet compliance requirements, and minimize risks early.