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Unformatted text preview: nt programs that can provide significant bottom-line value to
your organization. Efficiency gains
One of the major potential benefits of e-procurement is simply the reduction in time and
costs for processing the thousands of individual requisitions and purchase orders that flow
through a typical company’s purchasing system. As shown in Table 1, transaction
processing activities represent about 50% of total purchasing department time today on
average –– time that could otherwise be spent developing and executing sourcing
strategies, strategic supplier relationships, continuous improvement programs, and other
clearly higher value activities. Typical Allocation of Purchasing Department Time
20% 20% Contracting 50% Physical
Acquisition Source: CCMI Client Time Allocation Survey, 1997-99. In a typical company, 75% of all invoices are for purchases of under $1,000. At an average
cost of $100 to $200 or more to process the purchase order, pay the invoice, and handle all
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This test prep was uploaded on 04/01/2014 for the course INDE 6370 taught by Professor Staff during the Spring '08 term at University of Houston.
- Spring '08