Britain’s biggest charity, Cancer Research UK, has saved
more than £2.5m in a year by adopting an e-procurement strategy
using online auctions.
Cancer Research made 30% savings with its first online auction,
held to source office supplies, with 20% savings in a second
exercise to procure IT hardware and software.
The charity has also made 33% savings on materials for its
research laboratories, including chemicals, plastics and personal
protection equipment, as well as reducing its suppliers from more
than 200 to fewer than six.
The savings on Cancer Research’s £130m annual procurement budget
follow an initiative to improve procurement that began in December
2004, undertaken with consultants Aria Insite.
An analysis of the charity’s spending identified which areas
would be most suitable for e-procurement. The online auction
process was managed by specialist e-procurement firm
Vendigital.
Cancer Research procurement director Belinda Turner said there
had initially been “some skepticism” that online auctions could
deliver major savings. “Now with three projects under our belts, we
are convinced that this approach is extremely valuable,” she
said.
A fourth auction to source molecular biology supplies is planned
for late August.
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