04 December 2007 | Helen Gilbert
Businesses can reduce maverick spend by up to 41 per cent and deliver major business savings through e-procurement, according to new research.
A survey of 650 purchasing directors in the US, Europe and the Middle East found e-procurement not only curbs unauthorised spend but also determines which suppliers to use and at what cost.
The findings by Aberdeen Group and Wax Digital showed some organisations had negotiated a further 4.75 per cent incremental discount from suppliers because they are able to use the system to secure better prices.
According to the firms, costs incurred by creating and issuing an order to a supplier through the manual, error-prone paper-based procurement process can be typically reduced by 48 per cent.