| CHALLENGES |
|
BENEFITS |
| High order cost & time |
|
Reduction in order processing cost Time. |
| Too many items & vendors to track And follow up. |
 |
Streamlines ordering & accounting Processes as single transaction. |
| Inability to locate relevant supplier in Given time |
|
Frees up buyer to do more strategic sourcing etc |
| Poor tracking and control of Non-strategic spend. |
|
Lower administrative costs ( like Documents, telephones, fax, etc) |
| Higher product cost due to small Quantities. |
|
Price reduction due to aggregation Agreements / buying. |
| Multiple payment cycle for various Vendors. |
|
Payment process simplified , one Payment per month. |
| Issue of maverick buying, contract Non-compliance, low volumes, Disadvantage to price negotiation. |
|
Ability to negotiate more favorable terms with suppliers ( volume buying) |
