A study by Accenture, conducted on behalf of American Express, reveals companies can save up to 6.4% of their indirect procurement spend through use of our Corporate Purchasing Solutions.
Through comprehensive surveys and interviews with over 50 large and mid-size companies, Accenture identified three key areas of savings opportunities associated with the implementation of a Purchasing Card program:
Process Efficiencies
- Purchasing Card programs help streamline and automate purchasing processes, reducing average per transaction costs from up to $97 on average to $19
- Companies realize an average "hard-dollar savings" of $11 per transaction
- More than a third of purchasing transactions are still an entirely manual process
- Even with growing use of e-Procurement and ERP, nearly 70% of purchasing transactions still end in costly paper invoices
Compliance Improvements
- Companies can improve contract compliance levels by driving spend to preferred suppliers through flexible front-end and back-end controls
- While companies can negotiate average contract discounts of 11.4%, as much as 32% of their total indirect spend is off-contract
- Purchasing Cards alone can improve compliance levels by up to 12%
- American Express Preferred Supplier Lists enable companies to improve compliance levels by an additional 9% to 21%
Sourcing Benefits
- Purchasing Card programs can help companies negotiate greater average contract discounts with key suppliers
- The American Express® Corporate Purchasing Solutions can generate sourcing effectiveness savings of up to 1.5% of total spend, while competitive programs generate savings of 0.5%
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