Advances with Technological Leaps and Bounds
to industry experts (Aberdeen Group) recent findings are that electronic
procurement (e-procurement), which automates corporate purchasing
processes, is one area of e-Commerce that is delivering rapid and
solutions and services are significantly increasing purchasing efficiencies
and reducing costs for the acquisitions and ongoing management of
business expenditures. Further Aberdeen research of early adopters
of e-Procurement shows that new Internet-based service delivery
models, including Application Service Providers, ASP's and Procurement
Service Providers (PSP's) and e-commerce networks are speeding the
adoption of e procurement in companies of all sizes.
further finds that such Web based delivery models are significantly
reducing the time and expense of implementing e-procurement. The
implications of these findings are twofold: (1) Unlike other e-commerce
technologies, e-procurement is delivering results today, and (2)e-procurement
adoption is set to take off, thanks to the proliferation of Internet
based service delivery models.
said; many companies have realized significant cost and process
savings by using Internet-based procurement technologies to automate
the acquisition and management of non-production goods and services.
Expert's e-procurement software applications and services are self-service
solutions that streamline and support the purchase of non-production
materials like office supplies, copy equipment, maintenance, repair,
and operating provisions. These items can account for 30%-60% of
a company's total expenditures, yet they remain poorly controlled
and costly to process at most organizations.
fall of 2000, survey research focused on the experiences of recent
users of e-Procurement systems and compared to results to similar
to research previously conducted. During both research efforts,
Aberdeen collected information on product selection and implementations
as well as actual benefits realized by user organizations.
results of this research strongly indicate that e-Procurement users
have consistently been able to lower prices paid for goods and services,
reduce administration costs, shorten acquisitions cycles, reduce
the use of off-contract spending and improve inventory management.
In addition, the research shows that these benefits have been extended
across the spectrum of organizations in terms of company size and
purchasing volumes thanks to web-hosted delivery models from ASP's,
in turn cutting deployment cycles, and costs.
new service based delivery options, coupled with their low-cost
pricing models, are finally making e-Procurement available to a
mass audience. Indeed, many enterprises are evaluating e-Procurement
as they make their debut in e-Commerce.
successful implementation of e-Procurement for indirect items like
office supplies, research suggests that these Internet systems will
expand to automate more business processes including other non-production
business costs like travel and entertainment. Further predicting
that these developments will help e-Procurement systems expand to
include procurement of production materials as well, driving significant
sales growth for e-procurement systems, and an even stronger growth
within the ASP marketplace.