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Specialised procurement app adoption ups revenues for firms

Posted: 25 Apr 2014 ?? ?Print Version ?Bookmark and Share

Keywords:procurement? Zycus? ERP? source-to-pay?

Zycus' Richard Waugh talks about the emerging trend of adopting higher technology platforms in the procurement sphere. He provides his position on how source-to-pay suites perform against ERP systems, its implication for the suppliers, and the adoption rate in the electronics industry.

Recently, I participated in an EBN Live Chat, and the wide-ranging discussion underlined for me the need for education and awareness on the benefits of technology adoption in procurement organisations.

The chat session focused initially on technology adoption. Zycus' newly published Pulse of Procurement 2014 study was a primary focus, since it found that top performers showed a positive correlation between higher reported cumulative procurement generated savings and much higher technology adoption rates than their counterparts at lower savings thresholds. The survey of more than 300 global procurement leaders pointed to smart technology adoption strategies and solid business results achieved by top-performing procurement organisations.

  • Top performers reported more than 20 per cent cumulative savings, and there is a clear correlation to their adoption of state-of-the-art tools.
  • At top performers, 63 per cent of procurement staff are utilising the tools. Just as importantly, these organisations have highest adoption by functional stakeholders, with almost 50 per cent of the business users on boardtwo times higher than the rate of stakeholder adoption for lowest performers.
  • Companies have begun a shift away from enterprise resource planning (ERP) or home-grown/legacy procurement systems and towards specialised procurement platformsincreasingly favouring integrated source-to-pay (S2P) suites.
  • As a result, key procurement performance metrics are up dramatically from the 2011 study. For instance, contract compliance rates have risen 14 per cent.

Now, let me share some of the common questions that I hear from the industry and that came up in the recent chat.

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