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3 indeed in many cases the cost of handling the

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Unformatted text preview: elated paperwork, this represents a tremendous overhead cost for most businesses.3 Indeed, in many cases the cost of handling the paperwork can be greater than the value of the actual items that were purchased. In this area, e-procurement solutions are relatively well developed. Ariba, Commerce One, Oracle, and many other providers offer e-commerce applications that streamline and automate the entire workflow from issuing purchase orders, getting documents approved, paying invoices, and updating appropriate budget and financial systems. These approaches typically result in dropping the cost of fully processing transactions down to perhaps $25 per transaction –– a reduction of as much as 90%. An additional benefit of these approaches is reducing cycle times for responding to ongoing or unanticipated business needs. In many companies, the total elapsed time required to requisition even standard items is often weeks –– resulting in manufacturing downtime or inefficiency while waiting for materials, or carrying higher buffer stocks of “just in case” inventories. Using e-procurement tools to streamline and s...
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