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60% OF UK CORPORATES WILL CONSIDER OUTSOURCING PURCHASING

Added: (Wed Dec 13 2000)

Pressbox (Press Release) - For further information:
Lucinda Newton / Gareth Thomas / Fiona Agyemang, Profile PR, 020 8 948 6611
lucindan / garetht / fionaa@profilepr.co.uk
Andrew Hagan, TomorrowFirst 01252 323735

PR6 / December 12, 2000
60% OF UK CORPORATES WILL CONSIDER OUTSOURCING PURCHASING
TomorrowFirst research highlights demand for hosted and outsourced eProcurement
A recent survey by Dynamics Markets has shown that over 60% of corporates would consider outsourcing the purchasing function within the company.
The research, which was commissioned by TomorrowFirst, the UK’s first hosted eProcurement business solutions provider with in-depth purchasing and consultancy expertise, also found that 87% of these companies felt that the service they received from outsourcing companies would be similar to or better than is currently being achieved.
George Cooper, Chief Executive Officer, TomorrowFirst, explained: “Although this may have been surprising a year ago, it is becoming widely accepted within large organisations that outsourcing is an essential way to gain expertise in areas that are not core to the business.”
The research makes it clear why outsourcing is such an appealing option. 74% believe that they do not have the time or resources to seize opportunities that add value; with 42% believing they were under resourced. In addition, 72% felt they missed cost-leveraging opportunities for the company, either through a lack of knowledge, contacts or experience.
The key drivers behind outsourcing purchasing are common across businesses, with 90% prepared to outsource the function because it would free up internal purchasing resources to focus on core value-added activities. 83% recognise that it would bring cost benefits to the company and 80% feel that adequate control can still be maintained.
Cooper continued: “The research highlights the importance of time management within the purchasing department. It is evident that much of this is taken up with standard and repetitive acquisitions, for example stationery or IT consumables. Many purchasing directors feel that this places strategic responsibilities on the back burner. With TomorrowFirst, these directors will have the peace of mind that the outsourced business will be handled by purchasing specialists, leaving time in-house for making strategic decisions.”
About TomorrowFirst
TomorrowFirst was established by the world’s leading independent purchasing consultancy, the QP Group, to deliver eProcurement hosting and procurement outsourcing solutions for indirect costs to business. The first UK provider of hosted eProcurement solutions with purchasing expertise, TomorrowFirst has packaged the consulting methodology of the QP Group, the software of Biomni, and the systems integrations capability of Unisys with its own unique customer implementation process to provide the benefits of eProcurement within just weeks. The hosted business model eliminates the high up-front costs and lengthy implementation process associated with current eProcurement solutions. TomorrowFirst enables corporates to harness the benefits of eProcurement rapidly and cost effectively.

TomorrowFirst delivers eProcurement solutions designed by purchasing people for purchasing people. The purchasing and operational management expertise provided by TomorrowFirst means that for the first time customers can seriously consider if they really wish to keep the purchasing and management of certain categories of spend in-house or whether the outsourced option makes more sense.

Further information can be found on the Internet at www.tomorrowfirst.com

For further information, please contact:
Gareth Thomas / Fiona Agyemang / Lucinda Newton
Profile Public Relations Ltd, 020 8948 6611
Or Email: garetht@profilepr.co.uk/lucindan@profilepr.co.uk/fionaa@profilepr.co.uk
Or access the Profile website: http://www.profilepr.co.uk

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