Impact of eProcurement

One of the most valuable uses of eProcurement is in non-production (MRO) purchasing, which is poorly-managed within most companies.

• requires supplier interaction

• 20-50% of spend is out-of-contract

• economies of scale are not leveraged effectively

• 80% of purchasing transactions

• mostly paper-based

• enterprise software is not flexible enough

Production

Resources

20-40%

Operating Resources

10-40%

Human Resources

10-20%

Profit, Dividends

5-20%

Taxes, Interest

10-15%

• MRO / Industrial Supplies

• Business Services

• Temp help

• Production services

• Technical services

• Facilities, maintenance

• Information technology

• Contractors

• Internal admin/support services

• Office supplies

• Utilities

Corporate Spend

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