Indirect procurement creates real challenges for most organizations
June 07, 2017
OpusCapita’s European wide study digs into the current status of eProcurement
According to new study conducted by OpusCapita and Shared Services & Outsourcing Network (SSON) indirect procurement creates real challenges for most organizations today. In the consumer sector, the possibilities of e-commerce have been intensively deployed over the years with global online shopping and credit card payments widely adopted as part of everyday life. However, the business-to-business sector seems to suffer from a legacy of complex systems, manually maintained information and poor collaboration between buyers and suppliers.
Due to the massive amount of purchases, organizations’ procurement departments play an important role in consuming goods and services in their respective markets. However, 76% of respondents reported that their supplier information is updated manually. In addition, 16% of respondents claimed that their companies lack agility in their sourcing and are thus likely to pay too much for their goods. 51% of companies revealed that less than 10% of their suppliers send online catalogs, which is a pre-requisite for being able to automate the purchasing process and take advantage of true ecommerce.
OpusCapita and SSON’s Trends Shaping Indirect Procurement for 2017 survey involved 120 companies from different European countries. Interestingly, most companies use eProcurement mainly for sourcing of professional services, IT related services, facilities management and office services.
According to the study, complexity is clearly the biggest issue among organizations that responded. This contradicts with one of the very purposes of procurement, which is to make organizations’ buying easier and more efficient. That is why there is also increasing demand for digitalizing and automating B2B purchasing end-to-end, and the study reveals that the majority of the organizations are actually actively working towards improvements in their systems and processes.
An example of this is Finnish housing investment company SATO, which has worked with OpusCapita to digitalize its purchasing process.
- What people don’t realize is that modern eProcurement is all about managing the mix of internal stakeholders, external suppliers, ERPs and best of breed solutions. A consistent effort to break down silos has been a key value driver and essential in helping us achieve our results, says Sato’s Chief Procurement Officer Yaron Nadbornik.
If you want to hear more, join us at an upcoming webinar.
On June 7th, Rowan Lemley will interview Yaron Nadbornik in discussion around trends in eProcurement and how Sato Corporation has managed their own digital transformation.
On June 15th, Rowan will be joined by Patrik Sallner, the CEO of OpusCapita to discuss the future of B2B Commerce, where we are today and where we need to be to compete.
Rowan Lemley, Head of Product Marketing, OpusCapita
+358 400 613113
Karoliina Haikonen, Head of Communications, OpusCapita<
+358 44 345 5554
OpusCapita helps organizations sell, buy and pay more effectively by providing them with source-to-pay and order-to-cash solutions. With 600 million transactions processed annually by over 8,000 customers across more than 100 countries, we have created a global ecosystem where buyers, suppliers, banks and other parties connect, transact and grow. Together with our customers, OpusCapita is transforming sales, procurement and financial processes for the digital age. In 2016, OpusCapita’s net sales were EUR 240 million and employed 2,000 professionals. Founded in 1984, OpusCapita is headquartered in Helsinki, Finland. OpusCapita is a fully owned subsidiary of Posti Group Corporation. To learn more, please visit www.opuscapita.com.