Proactis, the spend management experts, revealed that analysis shows over one in ten procurement exercises don’t yield contracts, and that 80% of total value of average contract is actually drawn down in the financial year.
Procurement teams typically run a surplus of around 7% of their annual budget, according to analysis of over 3,200 procurement exercises worth over £250 million by spend management experts Proactis.
The new findings reveal that the average procurement exercise yields contracts worth 93% of the original budget allocated. Over one in ten procurement processes (13%) don’t yield contracts at all.
Proactis Holdings Plc (LON:PHD) develops and sells business software, and provides installation and related support services in Europe and the United States. The company offers Spend Control and eProcurement solutions that help organizations to improve operational and financial performance by enhancing the way they buy various goods and services.