Half of mid-size and large companies already use e-procurement systems to purchase products and services from suppliers, and more are planning to do the same, according to results of a survey from technology research firm Ardent Partners says.

The study about supply management systems and their users find e-procurement software at the top of the list of systems either already in use or planned for use. The study says 50% of companies already operate procurement software, and that 33% plan to begin using it soon. (The study did not indicate how soon.)

E-procurement software lets a company’s procurement department place orders online for products from suppliers the company approves ahead of time; it also enables the company control and keep records of buyers’ spending. 

Improving procurement technology, either by purchasing new technology or upgrading an existing system, was the top procurement investment priority cited by respondents.

Ariba, a provider of procurement network technology and services and a unit of business software company SAP SE, sponsored the survey, which included responses from 318 chief procurement officers and other executives from companies ranging in size from under $250 million to more than $1 billion in annual revenue across 25 industries. Respondents cite the following reasons for why they’re deploying or using e-procurement technology:

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  • Find more savings, 51%
  • Increase overall effectiveness and influence in corporate spending, 27%
  • Improve communication of procurement value and performance, 25%
  • Increase the percentage of spend under management, 21%
  • Better alignment of procurement with business goals and needs, 18%

The following are the percentages of respondents who say they already use e-procurement and related supply management software, followed by the percentages of companies who say they plan to begin using these technologies:

  • E-procurement software, 50%, 33%;
  • E-sourcing software, 48%, 29%;
  • E-payable (automated accounts payable),  49%, 30%;
  • Automated spend analysis, 37%, 39%;
  • Online business network, 28%, 37%;
  • Automated contract management, 16%, 42%.

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