05 June 2003
Companies that are not in a position to analyse all of their supplier spend are losing procurement savings of up to 8 per cent, the chief executive of analysts Dun & Bradstreet told delegates.
Allen Loren said gaining insight on each supplier was a "silver bullet" for savings.
Dun & Bradstreet has saved $92 million in the past six years by giving reference numbers to its supplier database and arming its buyers with a performance and forecast-based profile of every supplier, he said.
Loren said purchasers who think they have squeezed suppliers to the hilt often have not looked past accounts payable.
He added that telecommunications firm Verizon, a Dun & Bradstreet customer, avoided potential losses of more than $1 million by using its system to screen Enron's records, two months before the disgraced energy giant's financial irregularities were exposed.