07 June 2001 | Liam O'Brien
Ignorance about e-procurement in the fast-moving financial services sector is far more widespread than at first thought, according to a new survey.
It reveals that 70 per cent either had no intention of including supplier catalogues or had not yet made up their minds about whether to include them in their e-procurement initiatives.
Mike Talalay, head of the supply chain practice at Highams Consultancy, which commissioned the report, said: "This was the most surprising thing. Online catalogues are key to the e-procurement process, but they didn't seem to know this. This bolsters the view that there isn't enough knowledge on e-procurement."
Sixty per cent of respondents didn't know the average number of purchase orders their companies generated each month, while 70 per cent did not know the cost of processing transactions.
Insurance companies are lagging behind banks, with just 8 per cent using automated internal procurement systems compared to 25 per cent of banks. Banks are furthest ahead in development plans for e-procurement, with 95 per cent intending to use it for purchasing.
Around three-quarters of procurement professionals viewed the improvement in speed and efficiency of operations as a key benefit.
The survey, E-procurement in Retail Financial Services, was based on interviews with 100 senior procurement managers in the financial sector.