Posts Tagged Procurement
Companies invest more in e-procurement
April 4th, 2011 | Thema: News
German companies want to invest more money in electronic procurement solutions (e-procurement) to optimise business procedures in the near future. This emerged from current results from the annual “BME Electronic Procurement Barometer 2011″, which has just been presented by the Bundesverband Materialwirtschaft, Einkauf und Logistik (BME, or German Association Materials Management, Purchasing and Logistics) and the University of Würzburg.
According to this survey, there is particularly high interest in introducing electronic supplier relationship management (E-SRM): its use is being planned in almost a quarter of all companies. Thus this e-solution is the most popular in procurement. What is also noteworthy is that small and medium enterprises (SMEs) and large companies are making the same efforts to introduce these systems. However, an additional 27.6 per cent of those surveyed think these solutions are relevant but are not planning their introduction in the near future.
In addition, about one fifth of companies want to use electronic tendering (e-sourcing) in procurement in future. This trend can be seen primarily at large companies. In the medium term SMEs are not going to use e-sourcing. In comparison: at large companies only 20 to 25 per cent want to do without this procurement process modernisation.
Input goods more expensive than ever
March 21st, 2011 | Thema: News
The index of producer prices for commercial products was 6.4 per cent higher in February 2011 than in February 2010. As the German Federal Statistical Office (Destatis) reported further, the last time there was a higher rate of change was in October 2008 (+ 7.3 per cent). The index rose by 0.7 per cent in February 2011 compared with the previous month January. Price increases for energy were responsible for a good half of the total rise in February 2011. Energy prices were 11 per cent higher than in the previous month. Without taking energy prices into account, producer prices were 4.5 per cent higher in February 2011 than in February 2010.
The prices for input goods – i.e. goods that are used, processed or converted in production processes – rose by 8.5 per cent in one year, thus reaching a new peak. Prices for metals primarily contributed to the high rate of change. They were 22.4 per cent higher than twelve months before. For example, rolled steel was 30.3 per cent more expensive than in February 2010.
Involving suppliers to become more innovative and to reduce costs
November 8th, 2010 | Thema: News
If companies involve suppliers as early as the product development phase, they can ensure more innovations and lower procurement costs. This is result of a study “Innovations from and with suppliers” by the Bundesverband Materialwirtschaft, Einkauf und Logistik (BME, or German Association Materials Management Purchasing and Logistics). To allow suppliers to participate effectively in development projects the purchasing department also has to be represented in the development team, according to an additional result.
Researchers believe the most effective approach is cooperation, not only between the various departments in a company in the form of “procurement engineering”, but also with suppliers. Merely waiting for external impulses promised little success.
Facts and figures about the economic importance of procurement
October 19th, 2010 | Thema: News
Infratest has collected and evaluated facts and figures about the importance of procurement to the German economy for the first time. € 1.25 trillion – this is the purchasing volume of the 1,653 member companies of the Bundesverband Materialwirtschaft, Einkauf und Logistik (BME, or German Association Materials Management Purchasing and Logistics). The value of goods, merchandise and services bought by purchasing departments accounts for 42 per cent of company turnover. Up to now there have been neither accurate figures nor serious estimates of the purchasing volumes of all companies in Germany. This representative infratest survey is shedding light on this issue for the first time.
The analysis also provides statements about the groups of goods that will be procured in 2010 and 2011. According to this survey purchasers spend 15 per cent of the budgets for which they are personally responsible on energy and raw materials – across all sectors. 14 per cent is due for IT and telecommunications as well as software tools for the procurement process, and eleven per cent each for plant and machinery, producer goods and C class parts. These are followed by non-traditional procurement areas, such as travel, company vehicles, marketing etc. as well as logistics services, with six per cent each. Other services (consultancy, for example) make up seven per cent.