'Don't succumb to e-procurement over-optimism'

5 September 2001
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06 September 2001

Purchasers need still to be on their guard about over estimating potential results when developing an e-procurement strategy.

That's the message to be delivered by SM editor Geraint John in his address to an e-procurement summit in Rome today.

"It is early days for e-procurement and many of the benefits are still more anticipated than real," he will tell delegates.

"But the message is clear to those embarking on projects. Be conservative about cost savings you put in your business case and make sure senior management understands what is required to achieve them."

Surveys have suggested savings are less than 5 per cent for three-quarters of e-procurement users and savings of 15 per cent have been rare.

Early adopters have found that e-procurement systems are not just add-ons, he said. Companies realised that for full cost-effectiveness, e-procurement had to be part of a wider purchasing and corporate shake-up.

SMsep2001

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