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28 November 2011 |
Just under half of
buyers are using technology to help them choose vendors with 48.4 per cent
identifying it as a key use for IT, a survey has found.
Procurement Systems & Skills: Are we in balance?, published today by Edbury Daley, also found technology continues to be
important once a preferred vendor has been selected. It reported that 45.3 per
cent of buyers use it to help them find their best price while 18.8 per cent use
it reach agreement on price.
Analysing the findings,
report authors of the survey, which was completed by 756 procurement professionals,
said: “Perhaps this indicates a high reliance on e-auctions, which will be fine
in more tactical market places but we would question their effectiveness in
more strategic, value-based negotiations.”
In terms of the
overall value provided to the business through procurement technology, the
survey indicated that it helps to ensure people are better informed and the
strategy is more cohesive. A total of 54.7 per cent said their business now
“largely follows” the procurement process as a result of technology. Slightly
more (57.8 per cent) said it had enabled them to improve management information,
which has in turn resulted in better, timelier decisions.
importance in more strategic areas was less pronounced with just a quarter of
buyers identifying it as a strategic enabler. And 10.9 per cent of those
surveyed said: “Systems generally create more ‘noise’ than ‘value’ for me.”
Speaking during a recent CPO Agenda webinar, Chris Campbell, commodity sourcing manager at HSBC, said in the case of spend technology, the
key to maximising the benefits is collecting good data. He said: “Unless the
data can be collected effectively then it’s not going to work.” In order to
improve collection, he recommended sending out an example of the data required,
so suppliers and stakeholders can see what format to provide it in.