Several studies have recently pointed to the growth of the e-purchasing market and revealed that multi-billion dollar cost savings can be achieved by using e-procurement systems. At IBX we see the same signs; purchase order throughput has increased by 33% this year. It’s just one indicator that 2007 will be the best year in IBX history.

We are very excited about the new service desk solutions we are now able to offer our customers; another great example of how IBX can free purchasing resources in order for them to be able to focus on what they do best – strategic purchasing. All of our managed services are designed to underpin best practice purchasing of the kind that we discuss in the second installment of our ‘CPO Challenge’ series – this time we focus on how to support the transformation and accelerate usage of corporate-wide sourcing.

I also hope that the article about Saab from the latest issue of Efficient Purchasing will give you some tips about how to transform YOUR purchasing function. Lastly, I hope you will have a great start in 2008.

Enjoy your reading!
/Eva Svensson

Getting sourcing done on an enterprise level is usually easier said than done, and there are a number of reasons for this; the lack of sourcing competence; the lack common processes; and the lack of enterprise wide tools to support the initiative. But there is also the change management aspect of the issue, typically regarding the buy-in from heads of business units or plant purchasing staff who generally do not want to hand over the power of signing agreements to corporate purchasing.
So how do you get your group wide sourcing done? Two words; focus and automate.

IBX extends the partnership with Thomas Cook. The leading international leisure travel group has decided to rollout IBX eProcurement throughout their entire enterprise. IBX eProcurement is an on-demand purchasing solution based on mySAP SRM (Supplier Relationship Management).
“After checking several offers on the market we decided to cooperate with IBX due to its international experience in the entire eProcurement process”, reports Nikolaus Kirner, Vice President Corporate Procurement at Thomas Cook. “Also the cost-benefit analysis has convinced us. Thus we can significantly reduce our procurement costs. Another decisive factor is that it can easily be integrated into our existing SAP environment.”

All signals indicate a strong annual result and most likely 2007 will be the best year in IBX history. During the first six months revenues increased by 28 percent compared to the corresponding period last year. The future for purchasing has never looked better.

- With our efficient purchasing credo, IBX has led the way for the past seven years and we aim to continue doing so in the future, says Hans Ahlinder, CEO IBX Group AB.

In 2004, Saab implemented an ambitious  restructuring program to coordinate the Group’s support functions. At that time, this was one of the most extensive of its kind in Sweden. Purchasing was one of the first functions to come under the restructuring hammer. Three years later, Saab has achieved accumulated procurement savings of around SEK 600 million (EUR 66 million).

Since 2004 IBX has worked extensively with purchasing at Saab. In the latest issue of Efficient Purchasing Magazine, Magnus Strömer, VP Corporate Sourcing of SAAB tells the whole story and shows how purchasing transformation can be put into action.

Several reports (SPG Media Research, AMR Research) have recently pointed to the growth of e-procurement. So is e-procurement usage finally tipping the scale? All signs are pointing in that direction.
IBX transaction volume (business documents) has  increased by 66% from 2006. During the same period the number of purchase orders has increased by 33%.