Just Ask

Q: In your opinion, what are the most important value propositions in the supply chain? A: As always, cost reduction and service improvement, although the tools have changed significantly.



Many companies today are starting with e-procurement, and many of them are already generating huge returns on their investments. For example, after implementing an e-procurement system, one large semiconductor company was able to slash its requisition and purchase order costs from about $130 down to about $25 per transaction. Estimated annual savings? Over $12 million. Yet, despite well-documented success stories such as this, it's estimated that only 7 percent of the world's 2,000 largest companies have chosen an e-procurement solution.


If your company is the cautious type, consider starting small, with a limited number of supply chain partners. Then, as a solution proves itself to your satisfaction, you can eventually roll it out across your entire supply chain.


But the key is to get started. After all, the best game plan in the world won't do you any good at all unless you get in the game.


Matt Verghese is the president and COO of ECOutlook.
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