PROACTIS News

Not-for-Profits Lag Private & Public Sector Organisations in Spend Control & eProcurement Survey

In a survey summary report published by PROACTIS this month, Not-for-Profit (NfP) organisations report significantly lower current levels of automation than their counterparts in the Private and Public Sectors in all eight areas of Spend Control and eProcurement Technology covered in the June 2016 survey.
The areas covered include: Spend Analysis, Strategic Sourcing, Supplier Information Management, Supplier Relationship Management, Contract Visibility and Management, Purchase-to-Pay, Invoice Receipt and Processing, and Electronic Supplier Commerce.
 
Although 73% of participating NfP organisations report at least some level of automation in the areas of Purchase-to-Pay and Invoice Receipt and Processing, only 13% and 7% report ‘full automation’ in those areas respectively. By contrast, 100% of participating Public Sector organisations have at least some level of automation in both of those areas and 80% of participating Private Sector organisations said they have some level of automation for Purchase-to-Pay and 93% said they do for Invoice Receipt and Processing.
 
More alarming, though is the fact that over 50% of NfP organisations said they have ‘no automation’ in Strategic Sourcing, Supplier Relationship Management, Supplier Information Management, Contract Management and Electronic Supplier Commerce. Only 13% have any automation at all in the area of Supplier Relationship Management.
 
“It’s understandable that Not-for-Profits are behind other types of organisations in their adoption of Spend Control and eProcurement technology as they are generally smaller, sometimes less mature organisations,” said Rod Jones, CEO, PROACTIS. “The progress many NfPs have made in the deployment of foundational Purchase-to-Pay technology is great to see. Our expectation is that they will continue to roll-out those enhanced processes for another couple years then begin to turn their focus to the areas of Strategic Sourcing, Contract Management and Supplier Relationship Management where they can realise even greater savings. The leaders in NfP are already beginning to do that.”
 
The PROACTIS report outlines results from a June 2016 survey of procurement and finance executives who registered for The Spend Control Summit held at the Emirates Stadium in London. It summarises the current state of automation across eight distinct areas of Spend Control and eProcurement Technology with breakdowns by Private, Not-for-Profit and Public Sectors. It also provides a view of which of those areas organisations in each sector are focusing on for review and transformation today and over the coming year. Differences among the three sectors are compared and contrasted, and possible implications are highlighted.
 
Download the full report: Spend Control & eProcurement Technology Survey Summary
 
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