Electronic Procurement Solutions Deliver 10 Percent Revenue Advantage

Strategic Insights -

Electronic procurement solutions are transforming the way companies purchase equipment and supplies, with a new Web-based product and service offering from EDS automating the requisition process from start-to-finish. This offering, built on Oracle's ERP applications, enables users to create and enter purchase orders, which are then routed through internal and external procurement, product delivery, and final payment. According to Oracle studies, this streamlined process can cut purchasing costs by 20 percent, providing users with a significant 10 percent revenue advantage over competitors, as noted by the Gartner Group.

Key Takeaways:

  • The EDS electronic procurement solution automates the requisition process, speeding procurement and enhancing supplier performance assessment and purchasing opportunities.
  • The solution is part of EDS' E.Procurement Solutions suite and is based on Oracle's ERP applications.
  • The product enables any user with a desktop computer to create and enter a purchase order, which is then automatically routed through various stages.
  • The solution provides significant cost savings, with Oracle studies indicating a 20 percent reduction in purchasing costs.
  • EDS offers end-to-end services to support the solution, including process consulting, project management, systems integration, and implementation.
  • The solution is actively marketed by EDS to existing clients using Oracle ERP applications, with initial clients including Louisville Gas & Electric and VIA Rail of Canada.
  • The implementation of the solution requires project management, process consulting, and systems integration, areas where EDS excels.

Statistics:

  • The EDS electronic procurement solution can cut purchasing costs by 20 percent, according to Oracle studies.
  • This cost savings can provide users with up to a 10 percent revenue advantage over competitors, as noted by the Gartner Group.
  • EDS reported revenues of $16.9 billion in 1998.
  • The company delivers management consulting, electronic business solutions, and systems expertise to improve the performance of over 9,000 business and government clients in about 50 countries.

Sources:

  • EDS (NYSE: EDS), PR Newswire, September 27
  • Oracle Corp.
  • Gartner Group
  • EDS via the Internet at http://www.eds.com (no date specified)