The Prevalence of Waste in Procurement

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"Top procurement organizations continue to deliver financial benefits in excess of 7.5 times their cost and

investment base."Chartered Institute of Procurement &

Supply

"North American companies spent $1.4b on sourcing and procurement applications in 2013."

Gartner

Yet "...only 28% of survey participants indicated that their system made them much more productive."Gartner

The two most frequently cited sources for dissatisfaction were:

1. "The user interface is convoluted and it takes more time to do things than it should."

2. "The system lacks critical features that require manual workarounds."

Topline Strategy Group

"Better procurement systems could save 32.3m

hours and $1.5b per year."

Topline Strategy Group

Procurement Waste in the Private Sector

$45m-$60mThe estimated annual cost of waste

caused by unmanaged tail spend for an enterprise with indirect

procurement spend of $3bnBased on EY and Accenture

statistics

<50%The percentage of spend effectively managed by the average companyAccenture

$11mThe annual amount of procurement waste for an enterprise with $5b in revenue and no spend analysis programAmerican Productivity & Quality Center

Procurement Waste in the Public Sector

£82mPotential amount of savings

on uniforms the that could be achieved through increased

collaboration of military services

U.S. Government Accountability Office

£2.1bAnnual budget wasted due

to procurement inefficiencies in the NHS

Policy Exchange, comment on UK National Health Service

$840mPotential savings on

travel if the Pentagon adopted private sector

best practicesFoundation of Economic

Education

Extravagant Spending

$387,000spent on studying

the effects of Swedish massages

on rabbits

$856,000spent teaching

mountain lions how to walk on treadmills

£19,000spent by council on hiring ‘motivational

magician’

£427,000spent on rubber bullets police are not even allowed

to use

4 Causes of Procurement Waste

Tools & Processes to Effectively Address Procurement Waste

Since 2010, blur Group has been helping enterprises worldwide eliminate waste and inefficiency in their procurement process.

Our customers use blur's Platform to manage spend and immediately address key procurement challenges including tail spend, supplier relationships and ecosystem development. Strategic sourcing, SOW creation, project management and payment

processing become manageable through one single system.

Leading multi-nationals including GE, Solvay, Argos and Danone trust blur's global marketplace of 65,000 vetted service providers to buy everything from marketing

to technology and professional services.

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