Procurement managers count on electronic catalogues

The use of electronic catalogues has become a matter of course for many businesses across all sizes ranging from global players to small and medium-sized entities (SMEs): 69% of them use e-catalogues in doing business, 21% are currently planning or introducing such systems. 10% are at the moment still doing without them. However, major enterprises are significantly more courageous in this respect. While 80% of these have already been using e-catalogues for some years, this percentage among SMEs amounts to just 54%. This is the finding of the “BME barometer for electronic procurement 2008” conducted on behalf of the German Association for Material Management, Purchases and Logistics (BME).

The analysis was carried out by the faculty for industrial business management at the University of Würzburg. 119 companies took part in the survey, including 65 major companies (employing more than 2000 people) and 54 small and medium-sized entities.

The findings also show that companies continue being successful using internet based tools for electronic procurement. On average they save between 15 and 35% in terms of process costs and between 7 and 15% on purchase prices. At the same time electronic catalogues develop more rapidly than other solutions. The amount of electronically purchased c-articles is going to increase in 79% of all businesses interviewed.

With regard to e-sourcing” (tenders and auctions) it turned out that against the backdrop of the current compliance discussion companies are mainly focussing on tenders in order to increase process efficiency and transparency. Just 27% are still doing without electronic tenders. One third of companies already tender between 25 and 75% of their procurement volume electronically. There seems, however, to be stagnation with regard to auctions. About half of all companies doe not take this tool into account anymore at all.

In the field of “e-collaboration” (data exchange, quality management with regard to suppliers etc.) there is still a lot more potential for global players and SMEs. 44% of those interviewed do completely without such tools. An important factor is supplier evaluation. 46% of companies are currently managing at least 75% of their strategic suppliers by means of such an evaluation system. 80% of companies have integrated up to 30% of their suppliers into such as system and 16% integrated more than 50% of their suppliers. 29% of companies think that they can do without such tools.

Additional findings of the “BME barometer for electronic procurement 2008″ are available for download. GERMAN