E-Procurement as Counter-Cyclical

This is Brinton Baker and I lead marketing and business development for Paramount Technologies. We’re the leading global provider of Employee Workforce Automation software; we automate your procurement, project, time and expense transactions to deliver reduced transaction costs and enhanced process efficiencies that will streamline your employee management and procurement processes, improve your employee productivity and accelerate your business.

In this challenging economy everyone is trying to manage costs. Perhaps surprisingly then, we are seeing increased interest in e-procurement solutions. It’s not hard to figure out why. According to a leading industry analyst firm, e-procurement can:

• Achieve 5% - 10% price reductions through improved contract compliance
• Reduce order requisition costs from $114 per order to $31 on average
• Shorten purchase and fulfillment cycles from 8 days to 2 days
• Cut in half instances of maverick purchasing
• Lower inventory costs for indirect goods by 25% to 50%

The bottom line is that less money is wasted on inappropriate purchases and excess inventory, better prices can be negotiated, and employees are more productive. Just what businesses need these days.

How is this possible? Businesses typically spend between 50% and 80% of revenues on the procurement of external goods and services, so even small cost improvements can quickly yield significant bottom line benefits and create sustainable year-over-year cost reductions to support continued profitability and growth.

Paramount Technologies has proudly partnered with BroadPoint Technologies since 2004. If you would like to find out if e-procurement will help your business, or if you are currently using Dynamics GP Requisition Management and want to see how much more is possible, call BroadPoint to arrange for a personal demonstration.