Friday | 9 January, 2009
CIO
How to Know if E-Procurement is Right For You
Malcolm Wheatley 07 August, 2003 11:05:09

SIDEBAR: At Your E-Service

Right now, do you know what you're spending on temps? You would if you had hired them online.

Services compose a large and growing slice of corporate expenditure - on average a third of total spend, according to research from the Centre for Advanced Purchasing Studies. "In some industries, such as entertainment, insurance and finance, it can be a lot higher," says Tim Reed, vice president of product strategy for service procurement software provider Elance.

And the management of service procurement is often poor. For example, look at contract labour. "On any given day, ask a Fortune 1000 company how many temporary workers they have, how much they are paying them, what their total spend including fees will be and what accrued expenditure is owed to suppliers, and they won't know," says Elaine Taylor, president of consultancy Taylor-Harris.

Accordingly, says Toby Redshaw, Motorola's corporate vice president of IT strategy, architecture and e-business, the electronics manufacturer intends to e-procure just about every service the company buys - with one exception: benefits. "As with most companies, benefits have been a big deal at Motorola for over 10 years now, and the area is pretty tightly managed," he says. "We'd be polishing the shine on the silver, rather than adding any value."

SIDEBAR: Leading Vendors of E­Procurement Systems

Ariba: www.ariaba.com

CombineNet: www.combinet.com

Commerce One: www.commerceone.com

Elance: www.elance.com

i2: www.i2.com

Oracle: www.oracle.com

PeopleSoft: www.peoplesoft.com

QAD: www.qad.com

SAP www.sap.com

SupplyWorks: www.supplyworks.com

Technology One:www.techone.com.au

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