The latest study benchmarked housing association IT purchases against trade guide prices using Mercato Solutions’ KnowledgeBus software and found they are paying margins of 12 per cent, compared with a recommended industry standard of just three per cent*.
The findings follow research last year by Mercato, which revealed that housing associations topped a table of organisations who were securing the poorest value on IT product purchases – with some paying margins of up to 731 per cent.
Mercato’s Head of Benchmarking, Al Nagar, said: “Housing associations are beginning to take best practice steps to ensure that they’re not being overcharged on IT equipment. During the past year the average overspend has reduced from 33 per cent to nine per cent.
“While some organisations have managed to reduce the high margins they were previously paying, the sector is still among the worst when it comes to IT procurement.”
The dedicated IT edition of KnowledgeBus, automates benchmarking of purchases against daily trade guide price and stock levels of over 150,000 products from more than 2,500 manufacturers. A range of spend analysis tools help buyers identify, track and forecast market movements, providing knowledge that empowers procurers to get more from their IT procurement. It is accredited by the Chartered Institute of Purchasing & Supply (CIPS).
Nagar continues: “Organisations continue to pay over the odds for IT because of the radically fast moving IT supply chain where price and stock change daily. This is hitting bottom lines as procurement managers struggle to find validated trade prices to benchmark purchases plus the volume and speed of price and stock changes are simply unmanageable to track manually.
“With access to up-to-date supply chain data, IT buyers can gather the knowledge they need to quickly negotiate better deals with IT suppliers, so getting more from their IT budgets. The IT Edition of KnowledgeBus helps procurers reduce purchase prices and process time to save up to 24% on IT budgets.”