What do Research Organizations say about e-Procurement

Those agencies which adopted Electronic Procurement, managed the following:

• Reduced prices for materials procurement by 5% - 10%
• Shortening of the "demand-to-supply” cycle by 70% - 80%
• Lower administrative costs by 73%
• Reduction in purchases outside of contracts ("maverick spending") by half
• Reduction of stock maintenance costs by 25% - 50% on average.

Sources: AberdeenGroup (www.aberdeen.com), article "Wanted: Rapid Deployment & ROI for e-Procurement", by Tim A. Minahan.

The procurement of office supplies, consumables, IT equipment and in general materials and services related to the maintenance and operation needs of an organisation, and not materials used for production, amount to 30%-35% in the industrial sector, and up to 60% in the service sector.

Members of procurement departments indicate that purchases outside of contracts ("maverick spending"), amounts to 27% of the total purchases on average.

Source: AberdeenGroup (www.aberdeen.com), study "Best Practices in e-Procurement - EMEA".

Source: Jupiter Research(www.jup.com), survey of 76 purchasing agents.

Let's talk numbers. A survey of Deloitte Consulting says that upon implementing a system of electronic procurement the companies should expect a reduction in the total procurement costs by 5% - 15%. The research company Aberdeen Group, says that e-Procurement reduces transaction costs by 70%, from $ 107 to $ 30 on average. Industry experts from PriceWaterhouseCoopers and Killen & Associates, argue that a 5%-10% reduction in the cost of supplies, could increase profit margins by 28% to 50%. . . "
Source: PurchasePro Inc. (www.purchasepro.com), White Paper "e-PROCUREMENT: THE PLATFORM FOR CORPORATE PURCHASING".