Capitalize on E-Commerce: Online Procurement

That’s based on an average implementation cost of $2 million to $4 million and annual procurement savings of nearly 9% over the first two years.

Eighty-five percent of e-procurement users are highly satisfied. Savings expectations of those further along in implementation are only 3.5% lower than companies yet to begin implementation.

Most popular spending categories: office supplies, office equipment, computer hardware, software and other indirect expenses. But online procurement of direct goods and materials is heating up, and nearly half of respondents buy raw materials and goods for resale.

E-procurement-solutions providers also are developing ways for companies to improve the revenue side of their earnings statement.

The majority of respondents see online procurement as equally important as, or more important than, e-retailing. Most likely to benefit from e-procurement are high-tech manufacturing, telecommunications, banking and insurance industries, followed by utilities/energy, retail and general manufacturing.

Writer: Tom Truman