“……even without allowing for any overheads or profit, the shortest possible supply chain, incorporated around 18% of cost attributable to buying and selling goods and services”
-taken from a UK Study-
“e-tendering solutions would save 93% of the tendering costs and 85% of the time burden”
– study on the cost of going from paper-based tendering to e-tendering.
There are many such studies and of course many of the savings are true. But often when advertised by e-tendering platform providers, they don’t take into account the cost of using their platforms when doing these calculations.
Of course when you are talking about massive budgets and especially CAPEX project procurement and management, then these costs pale in comparison to the savings that can be had. However what about smaller tenders that don’t require the sophistication of an Ariba or iSpec?
There are of course e-tendering portals that are totally free for both buyers and suppliers but how do they make a living? Well by offering this free service they hope that customers will use their more sophisticated tools for their large procurement projects as well as consulting and training services.
In their own small way they are helping buyers and suppliers to save costs in the hope that they will reap the rewards later.