E-procurement has been slow to catch on for many marketers, but a new study published by Aberdeen, a Harte-Hanks company finds that it can improve cost savings, streamline internal processes, and enhance supplier relationships.
The study titled “E-Procurement: Trials and Triumphs” surveyed procurement executives from more than 620 enterprises. It finds that since 2001, companies have significantly improved purchasing performance across key performance indicators. As a result of their e-procurement initiative, the study found that enterprises on average saw a 35% improvement in spend under management, with a 41% reduction in maverick spend.
Businesses also reduced their requisition-to-order cost by 48%, and cut transaction cycle time in half. But the research indicated that significant e-procurement challenges remain in areas of supplier enablement, catalog management, and end-user adoption.
The report recommends that enterprises start with a center-led procurement department championed by a leader who will leverage the capabilities of business partners and stakeholders, and drive end-user adoption. Most companies will benefit by leveraging technology solutions such as supplier networks, catalog hubs, which allow quick enabling of suppliers and transmitting purchase orders electronically.
The top-performing enterprises should aim to integrate e-procurement with finance and accounts payable systems. For a free copy of the report, visit: http://www.aberdeen.com/link/sponsor.asp?cid=4215.