Every £10 invested in e-procurement software can bring a cost saving of £72, through savings on supplier costs and internal processing costs, according to a survey of 200 procurement professionals by Wax Digital. The procurement and sourcing software provider claims that the savings generated by e-procurement software far outweigh the initial spend. It found that:
- 82 per cent of survey respondents had sufficient infrastructure in place to measure e-procurement ROI;
- e-procurement advantages are contributing significantly to profit margins and efficiency;
- respondents expect to see e-procurement contribute to the broader success of the business;
- it predicts a 71 per cent rise in the number of UK organisations looking to adopt integrated Source to Pay to help deliver on a range of wider business benefits.
Strategic savings tool
Wax Digital said that organisations are now starting to realise the wider business benefits that e-procurement software enables and see a significant return on their technology investment. The company's Daniel Ball commented: “Driving savings through e-procurement is clearly a huge business benefit but its value to the organisation goes beyond that. E-procurement provides a platform to reduce expenditure through improved visibility, process automation and improved negotiation practices. A short period of use can result in noticeable savings which means that unnecessary expenditure doesn’t eat into valuable profit margins.”
Invoice processing problems
Wax digital also surveyed 300 senior finance and IT professionals in the UK to produce a study earlier this year on some of the problem areas at the other end of the procure-to-pay cycle, in invoice management. It produced the following infographic, which sums up some of the statistics and challenges associated with invoice processing.
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