Press Release Summary = Aberdeen Reports Real Value and Opportunity in E-Procurement Investment
Press Release Body = Mechanicsburg, Pa - E-procurement continues to deliver a real value proposition for a majority of enterprises and offers tremendous opportunity for organizations to improve their performance according to the 2006 E-Procurement Benchmark Report: E-Procurement 2.0. The fourth in a series of Aberdeen reports, found that not only is the value of an e-procurement solution clearly proven and can be achieved by the majority of enterprises, but those organizations utilizing e-procurement solutions to their fullest are differentiating themselves from their competitors, using the techology, people and processes to develop and maintain a competitive advantage.
The new study sponsored by Puridiom and conducted by Aberdeen Group examines the opportunities and challenges facing enterprises using e-procurement today as well as the strategies employed by the best-in-class users to maximize the total spend under management and to optimize the value of their e-procurement initiatives.
On average, the enterprises participating in the 2006 benchmark report:
· Increased their spend under management by 36% · Reduced their requisition-to-order cycles by 75% · Reduced their requisition-to-order costs by 48% · Reduced their maverick spend by 36%
While these results are compelling enough for enterprises to re-evaluate the decision to invest in an e-procurement solution, the results of the best-in-class enterprises, defined as enterprises utilizing the best practices and significantly superior to the industry norm, should cause one to pause. Aberdeen reported that best-in-class performers significantly outperformed their average peers by rising up to meet evolving challenges and achieved the following e-procurement advantages:
· 28.6% improvement in spend compliance · 90.9% improvement in spend under management · 41.6% impact on requisition-to-order cycle time · 23.3% impact on requisition-to-order costs
The advantages of utilizing e-procurement within an enterprise are clear, and the fact that these numbers handily outpaced the 1998, 2001, and 2004 benchmarks indicate the momentum e-procurement is gaining within today's enterprises, as reflected in the 2006 Report.
According to Aberdeen, "This (2006) benchmark is the new standard by which future e-procurement programs will be measured and is a solid foundation for enterprises looking to start or expand their procurement transformation towards a best-in-class procurement organization."
Albert Jacobs, Vice President of Puridiom states, "This (Aberdeen) report confirms the results our clients are experiencing with our solutions and services." Mr. Jacobs adds, "It validates the need for organizations to expand their e-procurement initiatives and take advantage of new technologies to address the challenges in the supply chain. This is why Puridiom continues to heavily invest in R&D to provide cutting-edge solutions and processes at the forefront of innovation."
As a sponsor of the study and report, Puridiom agrees with Aberdeen that all readers can use this framework to more specifically assess their own organization's e-procurement competence and use it to determine the actions they can take to improve their overall performance.
For a complimentary copy of the 2006 E-Procurement Benchmark Report, visit http://www.puridiom.com/aberdeen/
About Puridiom
Puridiom is a leading provider of e-Procurement, e-Sourcing, and e-Payables solutions and services.
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