Study: E-procurement still in early stages

The quarterly report, based on survey data from 407 supply management executives from firms belonging to the NAPM Business Survey Committees, tracks the online activity of both manufacturing and non-manufacturing firms. While 88.1 per cent of the surveyed firms said the Internet is an important part of their purchasing plans for the next year, a mere 6.3 per cent said that it has significantly altered their procurement procedures. Less than half of the respondents -- 45.7 per cent -- said they had directly purchased goods or services online, although 70.9 per cent reported indirect purchases.

Surveyed organisations cited three key barriers to their Internet activities: the overall slowdown in business growth; integration difficulties; and the lack of data standards.

A growing number of businesses are unhappy with their suppliers. In the January NAPM/Forrester report, 9.4 per cent of respondents rated their suppliers' online capabilities as very good or excellent. That figure slipped to 7.6 per cent in the current report, with 36.6 per cent of those surveyed saying their suppliers' capabilities are very bad or poor. Manufacturers were the least satisfied group, with 43.7 per cent assigning a very bad or poor rating to their suppliers. Despite (or perhaps because of) that dissatisfaction. 80.7 per cent of respondents said they use the Internet to identify new suppliers, and 48.8 per cent said they use the Internet in their RFP (request for proposals) process.

The manufacturing sector also showed a sharp decline in interest in tapping the Internet. In January, 41.3 per cent said utilising the Internet is very important or critical. That number dropped to 31 per cent in the current survey. Small volume purchasers also posted a steep drop, from 33 per cent to 23.8 per cent.

Organisations overwhelmingly agreed that they have just begun integrating the Internet into their purchasing activities, with more than half (50.9 per cent) saying they are less than 5 per cent of the way toward full adoption.

The Internet's much-heralded potential to save businesses money doesn't appear to be materialising -- or, if it is, those cost savings aren't being passed on to consumers. Only a quarter of the respondents (26.1 per cent) said their online purchasing activities have lowered the cost of ownership of their products -- and 8.1 per cent said their online purchasing has actually increased the cost of ownership.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Stacy Cowley

PC World
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?