More control for e-procurement users, says report

8 November 2007
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08 November 2007 | Paul Snell

Buyers who use e-procurement have 17 per cent more spend under their control than those who do not, a study has found.

According to the E-Procurement: Trials and Triumphs report published by research firm Aberdeen Group, the amount of spend controlled by purchasers after introducing e-procurement was 65 per cent, compared with 48 per cent before.

In addition costs were reduced by $29 (£13.77), and maverick spend was reduced from 39 per cent to 23 per cent.

But enabling suppliers remains a problem for buyers, as companies with an average of 3,737 suppliers had only managed to get 224 online. Aberdeen said the low ratio could be explained by the long time it took to get suppliers onboard - an average of 24 days plus an extra 14 days to make changes to online catalogues.

Improving process efficiencies is seen as the top driver for introducing e-procurement, followed by increasing compliance with purchasing processes and improving spend visibility. Companies were urged to integrate their e-procurement systems with finance departments to get the best results.

The Aberdeen survey examined 622 firms using e-procurement, with most responses from staff in procurement or the supply chain.


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