The Prevalence of Waste in Procurement
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Transcript of The Prevalence of Waste in Procurement
The Prevalence of Waste in Procurement
blurgroup.com
"Top procurement organizations continue to deliver financial benefits in excess of 7.5 times their cost and
investment base."Chartered Institute of Procurement &
Supply
"North American companies spent $1.4b on sourcing and procurement applications in 2013."
Gartner
Yet "...only 28% of survey participants indicated that their system made them much more productive."Gartner
The two most frequently cited sources for dissatisfaction were:
1. "The user interface is convoluted and it takes more time to do things than it should."
2. "The system lacks critical features that require manual workarounds."
Topline Strategy Group
"Better procurement systems could save 32.3m
hours and $1.5b per year."
Topline Strategy Group
Procurement Waste in the Private Sector
$45m-$60mThe estimated annual cost of waste
caused by unmanaged tail spend for an enterprise with indirect
procurement spend of $3bnBased on EY and Accenture
statistics
<50%The percentage of spend effectively managed by the average companyAccenture
$11mThe annual amount of procurement waste for an enterprise with $5b in revenue and no spend analysis programAmerican Productivity & Quality Center
Procurement Waste in the Public Sector
£82mPotential amount of savings
on uniforms the that could be achieved through increased
collaboration of military services
U.S. Government Accountability Office
£2.1bAnnual budget wasted due
to procurement inefficiencies in the NHS
Policy Exchange, comment on UK National Health Service
$840mPotential savings on
travel if the Pentagon adopted private sector
best practicesFoundation of Economic
Education
Extravagant Spending
$387,000spent on studying
the effects of Swedish massages
on rabbits
$856,000spent teaching
mountain lions how to walk on treadmills
£19,000spent by council on hiring ‘motivational
magician’
£427,000spent on rubber bullets police are not even allowed
to use
4 Causes of Procurement Waste
Tools & Processes to Effectively Address Procurement Waste
Since 2010, blur Group has been helping enterprises worldwide eliminate waste and inefficiency in their procurement process.
Our customers use blur's Platform to manage spend and immediately address key procurement challenges including tail spend, supplier relationships and ecosystem development. Strategic sourcing, SOW creation, project management and payment
processing become manageable through one single system.
Leading multi-nationals including GE, Solvay, Argos and Danone trust blur's global marketplace of 65,000 vetted service providers to buy everything from marketing
to technology and professional services.
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blurgroup.com© 2016 blur Group PLC