The results of a recent survey conducted by Wax Digital found that out of 200 professionals that make use of online procurement, their savings could surpass the initial cost of products by a total of 720%.
This takes into account the survey participants’ supplier and internal process costs in comparison to money invested in eProcurement.
Results indicated that the participants saved an average of £38 on supplier costs for every £10 spent on eProcurement, with an average of £34 saved on internal process costs.
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With an average of 380% and 340% in savings on supplier costs and internal process costs respectively, this leads the total percentage that participants claim to have saved on eProcurement to 720%.
Analysis of the survey stated that the apparent savings come from the advantages that adopting eProcurement produces.
The survey also found that 82% of participants said that the infrastructure they use is sufficient in measuring their return on investment (ROI), and a rise of around 71% could occur in the amount of UK-based companies aiming to incorporate eProcurement into their business strategies, in particular a Source to Pay feature to improve relationships with suppliers and the ways in which firms gather information.
Director of Wax Digital, Daniel Ball, said that the value of eProcurement to companies does not stop at benefiting business.
“eProcurement provides a platform to reduce expenditure through improved visibility, process automation and improved negotiation practices.” Ball says.
“A short period of use can result in noticeable savings which means that unnecessary expenditure doesn’t eat into valuable profit margins.”
“Beyond cost savings, eProcurement is also being considered as a strategic tool providing wider organisational and productivity benefits.”
“Increased efficiencies gained from automating time consuming and laborious tasks allows staff throughout the organisation to concentrate on strategy development, whereas increased cash flow can contribute to bolder growth ambitions.”