The Problems with Wholesale Cost Cutting
In the last few years many businesses have engaged in wholesale cost cutting in a desperate effort to survive. Only to discover that as the economy gets better they have cut out expenditures that are essential to business operations. We have learned the hard way that random cost cutting or budget freezes don’t really work. At the same time business operating costs must be contained. An effective remedy to this are web based procurement systems that can be used to check unauthorized or out of budget spending.
Did you know that one of the main reasons that business cannot control costs is the absence of a system for requesting and approving expenses? It’s true. Employees just spend company funds indiscriminately because there are no real rules or means to follow them if there were. Enter eRequester, a powerful web based software solution for managing expenses from requisition to payment. This solution provides an easy to use tool that enables companies like yours to implement and enforce custom defined workflow and approval processes. It connects directly with your Sage ERP and works like a charm.
What makes this system even better is that you can build into your purchasing process strategic rules that guide the process toward growing your business. These rules allow routine purchases to flow through the system quickly or force management approval on those that really require some strategic thought.
eRequester also facilitates the speedy acquisition and comparison of competitive bids on designated items so that you can be sure you are getting the best bang for your buck.
A recent study by the Aberdeen Group reported:
On average, the enterprises participating in the 2006 benchmark report:
- Increased their spend under management by 36%
- Reduced their requisition-to-order cycles by 75%
- Reduced their requisition-to-order costs by 48%
- Reduced their maverick spend by 36%
and said that, “E-Procurement continues to deliver compelling results and to serve as a foundation for the automation of all legacy procurement processes. Yet, there is still tremendous opportunity for many procurement organizations to improve their performance as a significant gap exists between the Best in Class companies and the rest of the field.”
If you are interested in learning more about Managing expenses from requisition to payment, eProcurement, contact your Net at Work Account Manager today.