| [November 24, 2014] |
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Zycus Debuts Comprehensive P2P Performance Benchmark for Indirect Spend
PRINCETON, N.J. --(Business Wire)--
Zycus, a world leader in Procurement Technology solutions across the
source-to-pay cycle, announces the release of its comprehensive new
Procure-to-Pay (P2P) Benchmark study for indirect spending. A diverse
group of some 453 procurement organizations participating in the new
Zycus study, the report aims to measure the progress global corporate
enterprises have made with automating and improving spend compliance,
transactional efficiency and accuracy, and financial governance and
control in indirect P2P processes.
Presented as Part
1 and Part
2, the Zycus P2P Benchmark report covers more than two-dozen key
performance indicators (KPIs) in all. Some of the key findings from the
study are:
-
Corporations, overall, have achieved less than 50% visibility into
total indirect (ID) spending and even less penetration in terms of ID
spend addressed by procurement and/or under contract with preferred
providers.
-
Only 40% of indirect spending is currently addressed by P2P
automation technology solutions, and procurement pros are not
tremendously optimistic about their abilities to increase that
percentage with first-generation P2P technology deployments.
-
Financial record-keeping accuracy and controls appear to be one of the
relatively stronger areas of P2P performance, with an average 72% of
all indirect POs being properly approved and 67% of POs being accurate
on first pass. Half of procurement organizations say less than 61% of
indirect spend transactions are currently being classified correctly
to spend taxonomy, exposing persistent weakness in procurement's
capabilities for promoting P2P and budget compliance and proactively
managing indirect spending from demand, daily decision and overall
consumption perspectives.
-
While P2P process control and automation technology has been around
for quite some time - since the middle to late 1990s - the study finds
surprisingly little progress, to date, on key performance metrics that
one might have expected to advance more substantially - for example in
PO and invoice processing costs, P2P process cycle times and so forth.
"Our new P2P Bechmark study report paints a sobering - yet hopeful -
view of procurement's incremental progress and additional opportunities
for documenting, categorizing, analyzing, influencing, controlling and
effectively managing corporate indirect spending," says Zycus VP of
Corporate Development, Richard Waugh, who recently debuted the study
results at the Zycus Horizon 2014 procurement leadership conference in
Amelia Island, Fla. "A big takeaway for Zycus from the study is that our
next-generation P2P
solution is well positioned to address the gaps that remain from
first generation approaches to P2P. Specifically, the application of
Artificial Intelligence technology upstream in the procure-to-pay
process transforms the users experience into a Guided Procurement System
- or GPS - resulting in next level performance in terms of spend
coverage, compliance, and transactional efficiency and accuracy."
About Zycus
Zycus is a leading global provider of complete Source (News - Alert)-to-Pay suite of
procurement performance solutions. Our comprehensive product portfolio
includes applications for both the strategic and the operational aspects
of procurement - eProcurement, eInvoicing, Spend Analysis, eSourcing,
Contract Management, Supplier Management and Financial Savings
Management. Our spirit of innovation and our passion to help procurement
create greater business impact are reflected among the hundreds of
procurement solution deployments that we have undertaken over the years.
We are proud to have as our clients, some of the best-of-breed companies
across verticals like Manufacturing, Automotives, Banking and Finance,
Oil and Gas, Food Processing, Electronics, Telecommunications,
Chemicals, Health and Pharma, Education and more.
To learn more about the Zycus, address e-mail to [email protected]
or visit http://www.zycus.com/
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