Analysis of Internet Procurement :: internet procurement companies spend significant amount money internet allows reduce costs 10 20 well increases customer base company reach paper explores industry market potential kind talking krach ceo ariba estimates typically third half area operating resources he also savings using system save somewhere oracle organizations up 60 percent more revenues Businesses Companies Finance Essays Analysis of Internet Procurement

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Internet Procurement

Companies spend a significant amount of money on procurement. Internet procurement allows companies to reduce procurement costs by 10% -20%, as well as increases the customer base a company can reach. This paper explores the Internet Procurement industry and market potential.

What kind of money are we talking about in Internet Procurement?

Krach (CEO of Ariba) estimates that companies typically spend one-third to one-half of their money in the area of operating resources (procurement). He also estimates their savings using the Ariba system save somewhere between 10% and 20%.

Oracle estimates that organizations can spend up to 60 percent or more of their revenues acquiring goods and services. The savings potential is significant. For example, a $1 billion manufacturing company with total procurement spending of $570 million can spend up to $348 million on non-production goods and services. Reducing this spending by only 15 percent would mean savings of $52.2 million each year!

Market Growth Expectations

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