Over the last few years, an increasing number of large companies have begun to take advantage of eProcurement systems to deliver better visibility and control over third-party supplier spend and ultimately to protect and grow their profit margins. This increased investment in eProcurement systems has been driven by the widely acknowledged financial benefits and by advancements in cloud-based technology.
Considering that 70% of the average company’s revenue is spent with third-party suppliers, there is a clear benefit from having better visibility to control it more effectively and efficiently. It’s estimated that effective management of third-party spend can on average release savings of between 7-12%. For a company with an annual supplier spend of £15 million, this equates to between £1 million and £1.8 million savings. These annual savings are returned straight to the bottom line. How much more sales turnover would your company need to generate to deliver this much profit?
Therefore, there is a great opportunity to deliver long-term financial benefits to companies by using eProcurement solutions.
Until recently, only large enterprise-sized companies have been able to take advantage of the benefits delivered by eProcurement software due to the lack of systems available to SMEs and the investment required in terms of both time and money.
Our eProcurement solution, oboloo, is designed specifically for SMEs who want to take advantage of the benefits delivered to their businesses. oboloo enables companies to be supplier smart through eSourcing, Contract Management, Supplier Management and Savings Management. To learn more visit www.oboloo.com