Sunday, November 12, 2006

E-Procurement reduces costs

Enterprises today are using e-procurement to manage more requisitions, spend categories and suppliers than ever before.

Enterprises today are using e-procurement to manage more requisitions, spend categories and suppliers than ever before. And the results of a new research brief from independent research firm Aberdeen Group indicate that those leveraging the integrated offerings of Ariba, the leading spend management solutions provider, reap significantly higher rewards. According to 'E-Procurement Beyond the Hype: Companies Increase Spend Under Management, Reduce Costs with E-Procurement Systems,' companies using Ariba solutions to manage their procurement are 'outperforming their peers in multiple areas,' leading the way when it comes to cost reduction, compliance and spend under management.

In evaluating companies that have implemented e-procurement systems based on total spend under management, suppliers enabled, user adoption and reduction in unapproved or 'maverick' spending, Aberdeen found that Ariba customers: * Reduced off-contract spending by an average of 34 per cent, compared to 21 per cent for all other respondents.

* Increased spend under management by 30 per cent, compared to 8 per cent for all other respondents.

* Manage 46 per cent of their total indirect materials spend through their e-procurement system as compared to 35 per cent for all other respondents.

'We are proud to report this benchmark of Aberdeen clients using Ariba spend management solutions,' stated Sudy Bharadwaj, vice president of Aberdeen Group.

'Aberdeen's fact-based research does show where Ariba has excelled in delivering spend management results.' 'The more spend a company can control, the greater the results they can achieve,' said Lou Unkeless, chief marketing officer, Ariba.

'Ariba's spend management solutions are uniquely designed to provide the technology, commodity expertise and services needed to bring more spend under management.

And as the Aberdeen report demonstrates, companies of all sizes across all industries are using them successfully to accelerate their bottom-line results and achieve excellence.'