Buyers show lack of faith in spend data.

Just under one-third of purchasers have a high degree of confidence in the data that measures their spending, according to a report.

In a survey of 150 procurement professionals by procurement technology firm Rosslyn Analytics, only 28 per cent of buyers said they believed their spend data was "complete and accurate".

In addition, 31 per cent of respondents had a low level of confidence that the information was accurate enough for decision-making purposes. Forty per cent had a medium level of confidence.

"With recent advances in technology including automated data extraction, categorisation and enrichment services, it shocks me that procurement continues to have inadequate spend data," said Rosslyn Analytics CEO Charles Clark.

"The sooner procurement professionals resolve data quality concerns, the sooner they will be able to focus on the serious business of sustainable cost savings."

The report also found that 40 per cent of respondents used a third-party provider to gain additional information from available data.

The findings follow a report published by the same company claiming improved spend analysis could increase savings from strategic sourcing by up to 12 per cent

In response to untapped efficiency opportunities, PfH has launched a partnership with ProcServe, a leading provider of eCommerce solutions, to provide a pioneering eProcurement and Purchase-to-Pay solution for the social housing sector. PfH's Custom built eProcurement marketplace will help the social housing sector gain visibility, control and compliance over spending, enabling more strategic and cost-effective purchasing decisions and reducing processing costs.

The PfH eProcurement marketplace, available for all PfH Members from summer 2010, will make it easier for Members to:

• Make, track and report efficiency savings

• Access PfH Agreements

• Monitor and control spending

• Make more strategic and cost effective purchasing decisions

• Trade electronically with suppliers

• Streamline their procurement process 

The solution provided by ProcServe, will help streamline and deliver effective procurement services for social housing providers across the UK. It will specifically help social housing organisations to reduce the price paid for goods and services by providing them with easy access to pre-loaded framework agreements, provide simple connectivity to suppliers and deliver e-invoicing capabilities. The solution will help these housing providers to streamline their procurement process, enable the accurate tracking of spend and deliver efficiency savings.
The Procurement for Housing eMarketplace will be available in 2010. For more information about the service, please contact PfH on t: 0845 864 5260, e: info@procurementforhousing.co.uk.

Resources

http://www.supplymanagement.com/news/2010/buyers-show-lack-of-faith-in-spend-data/?locale=en.

http://www.supplymanagement.com/news/2010/analyse-spend-to-save-money-companies-told/?locale=en.