According to ProcurementBulletin (PB), a web magazine devoted to helping supply chain professionals stay informed, eighty-five percent (85%) of maverick buying (uncontrolled buying) is not uncommon. In other words, very few companies have an e-Procurement system that captures the benefits of a sourcing initiative, for example contract usage and compliance. The result is maverick buying – it’s not uncommon to find that up to eighty percent (80%) of all invoices generated are from uncontrolled buying.
According to PB, ‘pricing control’ is central to the e-Procurement flow and for controlling Maverick Spend. Functionality in an e-Procurement solution, such as the ability to market test a Suppliers Catalog to locate the least cost source for an item, as well as allowing the Buyer to rate the items, will ensure that the Requisitioners select the most cost effective items for their purposes.
Additional Catalog Management functionality such as the ability to create discrepancy reports that will track the price differences between an existing approved catalog and a new catalog sent by a Supplier will allow the Buyers to control price changes and approve or reject a new Supplier’s catalog with complete auditability.
ISS Group’s Business Process Improvement suite of solutions for QAD EA offers a comprehensive e-Procurement solution, which will streamline procurement processes so that you can achieve cost savings while saving your employees valuable time when they are buying goods and services or even looking for the right information to get their work done.
Visit our website at www.issgroup.com for more information on all of our BPI solutions.