26 August 2004 | David Arminas
Finance directors have little interest in cutting procurement costs, according to new research commissioned by purchase-to-pay specialist Burns e-Commerce Solutions.
Two-thirds of respondents said cutting cost is either not a priority or a minor priority, even though 67 per cent want to turn purchasing into a value-adding centre.
Half of respondents said they saw potential savings from improving the purchase-to-pay process falling between £1 million and £50 million.
But 53 per cent of respondents said they had managed to capture less than 25 per cent of these potential savings.
David Foster, chief executive of Burns, said many financial managers failed to appreciate the "easy savings on their doorstep".
Three-quarters of the 60 respondents were either a board member or reported to the board, and from organisations with a turnover of over £500 million.