We do find that AeCS sometimes competes with traditional communication channels like fax, phone, e-mail, etc. These are often seen as efficient and reasonable solutions and occasionally we meet potential users that find it difficult to see how e-business can revolutionize their procurement processes and be easier and more cost-effective.
This is why we work very hard to demonstrate both direct and indirect revenues, as well as solid cost-reductions easily achieved through the implementation of AeCS.
Many of the ROI elements can be hard to identify as they are hidden behind quantitative effects such as better control, overview and administration of the procurement process. Still, we think it is important to highlight as many elements as possible, so that all companies can achieve maximum output of the vast saving potential that AeCS offers.
Countless analysis have been executed to find the exact cost of manually processing a request, a proposal, an order or an invoice. Many people are surprised that the cost can be as much as 200-800 NOK per transaction, only to administrate a transaction coming in or going out via post or fax. The cost is often hidden in copying, waiting, reminding, co-coordinating etc.
The transaction cost will of course vary depending on the company's size and organization. Nevertheless, the traditional and manual procurement process is expensive and does not bring any added value to either buyer or supplier. AeCS can ensure increase in value for all parties by reducing administration costs, increasing service level and enhance reliability of delivery.
