© 2011 Sixhills Consulting LtdThe procurement processes and the proportion of spend under management determine the appropriatee-Procurement technology solutionsImpact of Procurement Process Type on e-ProcurementGeneric Procurement ProcessExamplesPurchase to specification– Simple– Complex• Office stationery• Electronic modulesConsumption• Telecoms• FuelRecurring Payments• Rent• InsuranceSupplementary Resourcing • Temps• Contract labourEmployee Expensed• T&E• Mobile phonesProject tender• Major capital equipmentAd hoc• Items not normally purchasedTypical Profile of Spend by Process Type10%15%25%15%22%12%1%Observations• Catalogue based e-procurement often only suitable for purchase for 10–25% of expense base (purchase to spec)• Consumption based procurement requires systems to reconcile expenses (against demand expectations) after the fact• Few useful solutions exist to support supplementaryresourcing and consumption based procurementSuitable for catalogue based e-procurementPartially suitableB2B PerspectivesP7
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