It is widely recognised and documented that e-procurement can return considerable business benefits to an organisation.
The National e-Procurement Project highlighted potential savings of £1.1BN could be had from an effective e-procurement process.
The Chancellor's recent budget praised OGCbuying.solutions for helping the government to make £2.3bn savings across central civil government with the implementation of effective procurement frameworks.
In a nutshell, e-procurement automates manual processes to increase spend visibility, reduce rogue buying and provide a controlled purchasing environment in which efficient transactions with multiple suppliers translate into cost savings.
In addition, today's next generation of on-line aggregation software gives buyers the tools of procurement experts, comparing price and availability within one secure environment.
Further added value management functionality is often offered as well.
The bottom line is time and money savings that extend the reach of any in-direct procurement budget.
Best practice equals best value!
However, a successful implementation will depend on users being happy to adopt a new style of working.
Change management is a vital role any supplier and recipient organisation must undertake in partnership for the best results.
This post is part of a series of articles addressing e-procurement and written by Peter Robbins, MD, Probrand Ltd which publishes the Mercato Total Commerce and www.theitindex.co.uk
If you want to read other articles in the series, please click on the author's link above.