The Intake Management and Procurement Process Orchestration (IM&PPO) space is a relatively new and exciting area in the procurement tech landscape. It’s an example of the resurgence of innovation in the procurement tech space, alongside sourcing automation and category management solutions.
IM&PPO: Not a Standalone Solution
While some argue that IM&PPO is ineffective on its own, it’s important to note that these solutions are designed to extend and connect previous investments, thereby enhancing their usage. Most organizations have invested in ERP systems and additional procurement solutions, making it rare for IM&PPO to operate independently. Therefore, the claim that IM&PPO is ineffective on its own is somewhat misleading, as they were never designed to function in isolation.
The Limitations of S2P Suites
While S2P suites theoretically should be able to support any type of request, they often fall short. Their workflow capabilities are typically designed for standard purchasing requests following a standardized process. They struggle with more complex processes that require actions outside of procurement in other systems. S2P suites are procurement-centric, while IM&PPO solutions cater to non-procurement specialists. This difference in focus can pose challenges for organizations that adopt a best-of-breed strategy.
The Convergence of IM&PPO and S2P
Despite their differences, a convergence of IM&PPO and S2P is on the horizon. S2P players are beginning to build or release their own IM&PPO modules, while IM&PPO providers are likely to build out more S2P capabilities. This convergence is reminiscent of how ERP providers approached S2P.
In the grand scheme of things, the procurement tech space needs both an easy-to-use interface for end users to engage with procurement and the right tools for procurement professionals to support their internal customers. The convergence of IM&PPO and S2P is a step in the right direction.
