Quick fix procurement proves costly

13 November 2006 — Kidlington (UK): Leadent, the business and technology consultants, has found that certain organisations spend between 10 and 40 percent more than they need to on high tech procurement methods.

According to Leadent, too many companies "blindly trust new technology or become utterly baffled by the very solutions designed to make external purchasing decisions simpler".

 

Organisations become too reliant on large enterprise systems such as SAP or Oracle and lose old-fashioned market research and supplier negotiation skills as a result.

 

To combat this problem, Leadent has developed a new back-to-basics procurement approach which reviews all current supplier arrangements, quantifies financial benefits and starts supplier discussion and negotiation within weeks.