Imagine you are a procurement manager, IS manager or consultant who needs to demonstrate the cost savings of e-procurement to a senior management team in order to obtain approval for investment in an e-procurement system. Develop a spreadsheet model for each of two hypothetical companies to demonstrate the case.
1. Cost-saving calculations. Using the input parameters for the two companies in Table 7.4, develop a spreadsheet model to calculate traditional overall purchasing cost, new overall purchasing cost, percentage change in cost per order and percentage change in overall purchasing cost.