To view a replay of the webinar featuring Kay Ree Lee from RockTenn or get a copy of the whitepaper, Best Practices in eCatalog Management or other resources by clicking here.
Q: Do you have any benchmarks or statistics around cost associated with a buyer placed PO vs a catalog PO? This kind of stats are needed to promote catalog
A: According to a 2008 Aberdeen study, the order costs before an eProcurement system with catalogs enabled is $51. After a system is put in place the cost drops to $26. Cycle time drops from 11.6 to 3.4 days and percent of maverick spend drops from 33% to 20%.
Q:How many organizations are represented in the number quoted "average org. has 224 catalogs"? Seems high.
A: This is from a study from Aberdeen from Oct 2007 and looked at 622 enterprises. Even at 224 catalogs, which granted depending on your industry and company size may seem large, the amount of spend controlled through catalogs and eprocurement is very low. The key point to remember here is to increase the number of catalogs enabled to achieve a high degree of spend controlled. Some would say at least over 65%.
Q: Of the 74% Best in Class Companies who have catalogs is this related to transactions or spend?
A: According to Aberdeen, 74% of top performing organizations use eCatalogs complementing their eprocurement systems. So this is the % of the survey population not spend or transactions.
Q: Targeted for eCatalogs: Suppliers who receive150 orders or more annually. Do you mean 150 orders or lines in orders?
A: 150 lines in orders. Using a catalog will reduce the time required to find manually and fill out the required information for each item ordered.