E-Procurement-in-New-Dimensions

Efficiency gains one of the major potential benefits

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

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 Requirements Planning Management and Support 10% 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 the r...
View Full Document

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.

Ask a homework question - tutors are online