Author: Pete Loughlin

The original vision was right. The cost of purchasing as well as the cost of purchases could be dramatically reduced by applying the new technology. And there was a road map – a detailed vision showing how to secure the savings. The costs weren’t even that high – especially in comparison to the potential savings - but in the excitement, we lost the map and now, the vision is lost.

Tradeshift, and Taulia have announced a partnership.  Tradeshift’s enterprise customers can now integrate to SAP® with Taulia’s advanced connector. The press release yesterday announced that Taulia will launch its Dynamic Discounting application on the Tradeshift network for businesses of all sizes, adding value for both buyers and suppliers and easing the invoicing process for all. We spotted the potential of both Taulia and Tradeshift in their early days and we've followed their progress with great interest. Indeed, both have subsequently become sponsors of Purchasing Insight and it's exciting therefore to see them capitalize on the synergy that exists between them.

Finally the penny has dropped. Automating the purchasing process and controlling spend more closely by using modern technology reduces cost compared to following a manual or paper based process. This could save between 5% and 20% of procurement expenditure according to the EU commission. That means that the EU could reduce its public procurement spend of €2 trillion and save a massive €100 million. And all this can be achieved in 4 years – apparently. That’s a huge amount of money. 150 large hospitals could be built with that so it’s worth aiming for before anyone gets excited – and I hate to be the bearer of bad news – it isn’t going to happen.