An end to end procurement services system that is properly maintained will help an organization to simplify purchasing to the point where people want to use it.
This increases the amount of spend that goes through the system, as well as the quality of the spend data that is available.
Furthermore, this serves to increase the amount of spend that the purchasing team has visibility into.
In this way, the organization is able to leverage their purchasing power with every vendor for every commodity, thereby obtaining great savings for the enterprise.
Spend Under Management Spend under management will naturally imply an increase in spend under management, which is the ultimate key to achieving significant savings in any organisation.
This will guarantee that spend occurs for approved goods and services with approved suppliers, and is contracted at best price rates.
Furthermore, this will also ensure that the company enjoys visibility that is required into spending, such that they are able to conduct meaningful spend analysis.
This will in turn allow the organization to identify the categories in which they are most likely to yield returns in their sourcing efforts.
Following an initial implementation of an end to end procurement services systems, the average organization will increase their spend under management by 35% almost overnight, according to research.
In addition, a best-in-class company that implements this type of procurement will witness an increase in spend under management of 59 - 82% almost instantly.
This is just one of the many benefits that this type of procurement system offers.
Realized Savings All this will of course translate into the one important benefit of hiring the services of end to end procurement providers - realized savings and cost reductions.
The average organization that undergoes a comprehensive procurement system implementation is able to save an average of 4.
8% on spend, while the best in class businesses will typically perform even better.
And saving money is what procurement should be all about to begin with.
End to end procurement providers can help reduce your average requisition to order cycle by two thirds in a typical organization.
In addition to cycle time reduction, such a system will also allow for the elimination of invoice and tax overpayments, identification of un-deposited checks, while focusing more time on strategic issues such as cost reduction.
The end result is that the procurement system becomes the central savings hub of the supply chain of the organization.