Don't Believe the Anti-Hype

Aberdeen claims e-procurement naysayers are only countering previous predictions

Boston, MA  June 4, 2001  Aberdeen Group, an information technology (IT) market analysis and positioning services firm, recently released a report that counters industry predictions of B2B e-commerce failure with validation of real benefits that have been recognized by enterprise users of Internet-based and e-procurement technologies. According to Aberdeen, the recent rash of anti-hype' surrounding e-procurement was only a way for certain industry prognosticators to recover from their previous predictions for the growth of B2B transactions.

"The transaction focus of such predictions overlooked what is truly important to businesses: process improvements and cost benefits. Aberdeen research finds that e-procurement is delivering real benefits in both these areas, said Tim Minahan, director of supply chain management research at Aberdeen. Specifically, our research finds that enterprises using e-procurement technologies are recognizing enhanced supply chain visibility and management, greater process efficiencies and improved cost control."

Aberdeen research has identified benefits in the following areas:

·        e-Procurement: Internet-based technologies to automate the acquisition and management of goods and services. Some of the benefits companies have recognized through the use of e-procurement technologies include a 73 percent reduction in transaction costs, a 70 to 80 percent reduction in purchase order processing cycles, and a 5 to 10 percent reduction in prices paid. Based on these findings, Aberdeen estimates that an averag,e midsize organization can expect to save almost $2 million per year through the use of e-procurement technologies.

·        e-Sourcing: Web-based technologies designed to support the identification, evaluation, negotiation, and configuration of products, suppliers, and services. Some of the benefits companies have realized through the use of e-sourcing technologies include a 25 to 30 percent reduction in sourcing cycles, a 5 to 20 percent reduction in prices paid, and 10 to 15 percent faster time-to-market cycles. Based on these findings, Aberdeen estimates that U.S. businesses could recognize $690 billion in savings through the adoption of e-Sourcing technologies.

The full details of Aberdeen's user research findings can be found at  and