Making it easy for employees in complex organisations
to buy the right things from the right suppliers
at the right prices

Wax Digital is Europe’s leading provider of on-demand P2P. Our web3 solution set for P2P comprises the following application modules:

Master Data Management
Purchasing
Transaxions
Invoice matching
Reporting
Forecasting

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The Bullet-Proof Business Case

Find out more about the industry's most compelling business case for eProcurement.

Modular Architecture         Please click here for a graphical overview of how our web3 modules for P2P and eSourcing work together

Making the ROI case for P2P

Properly planned and executed, an eProcurement system will reduce the time required to complete transactions, prevent maverick purchasing, and capture information that allows management to scrutinise buying patterns. It also prepares the buying organisation with statistical tools to better negotiate new contracts.

Tangible benefits from the use of eProcurement include:

• Reduced cost of purchases through improved sourcing on indirect and direct commodities
• Reduced operational costs through elimination of manual processes
• Rationalisation and optimisation of supply chain » Reduction or complete elimination of maverick spend
• Reduction in order errors and returns
• Decreased cycle times
• Comprehensive, automated auditing and tracking
• Increased and more sophisticated reporting

Intangible benefits include:

• The ability to introduce or improve commodity and supplier management
• A stronger relationship with preferred suppliers
• Reduced turnaround and improved throughput
• Improved trending of cost-centre spending
• Improved visibility of price changes
• Improved spending controls and employee compliance

Calculating the tangible elements of ROI for eProcurement is fairly straightforward, for example:

Compliance Savings: Eliminating maverick spend by restricting buyers to contracted suppliers and leveraging the opportunity provided by eProcurement to implement an eSourcing strategy creates an average saving of 13.2% in goods and services, according to research by Aberdeen Group.

Labour Savings: Gartner Group states that manual procurement is, on average, an 11-step process with administration costs to process a purchase order requisition ranging from £25 - £40 depending on the cost of a company’s resources. Through approval workflow and administrative efficiencies, eProcurement can reduce this cost by as much as 80%.

An ROI calculation should not include too many drivers or factors or it will make it difficult to track and measure going forward. Prioritise the two or three drivers that will bring the greatest benefit to the company and then evaluate and document current process costs against expected benefits and cost savings from eProcurement. For example, if the key objective or driver is to increase the use of preferred suppliers and established contracts then the base line for calculating ROI is to determine how many contracts are in place and what percentage of spend goes to those suppliers.

A calculation of compliance benefits can then be estimated:

• If contract spend is £10,000,000
• And off contract spending on average is 20%
• And the average contract price is 25% lower than the retail price of the off contract spend
• The potential savings would be (10,000,000x20%) £2M x 25% = £500,000

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For more examples and detail on the ROI case for eProcurement, please click here to request a copy of our ‘eProcurement ROI’ and ‘P2P Savings’ documents

	P2P Delivery		P2P Return on Investment		P2P On-demand
There's no escaping the fact that enterprise P2P is a large scale, complex project. Be prepared...		The potential efficiency gains and cost savings are huge - here we examine just a few.		Why on-demand, web-based solutions work for P2P, and why we think ours work best of all.