UK CFOs say: E-procure or die

According to a survey published today by independent analysts Dynamic Markets, the driving force of change will be cutting administration costs.

Presenting the report at the launch of TomorrowFirst, billed as the UK's first e-procurement company, CEO George Cooper said: "The cost of a purchase order is reckoned by the CBI to be between £70 and £80. We aim to cut that to about 10 per cent."

TomorrowFirst says it will make money by offering purchasing managers a transaction-charged ASP purchasing service.

The survey shows that 96 per cent of purchasing managers at large corporations share common problems. Most are concerned they lack the time to develop new purchasing strategies. Many also feel their control of company purchasing is slipping.

The survey also listed a number of lessons learned by early adopters and imparts advice to companies looking to invest in e-procurement.

The procurement managers felt the main categories of supplies suitable for e-procurement were car hire, computer hardware, office furniture, stationery and travel.

They also saw the only two obstacles to e-procurement as supplier readiness and user acceptance. Also, most companies expect returns on their initial investment, which in many cases exceeded £1m, within 12 months.