Error reduction in purchasing logistics
The basis for decisions in purchasing for smaller and medium-sized companies are still mostly calculations with spreadsheet software. However, if errors creep into these calculations, this can cause enormous costs for companies.
https://youtu.be/xCVG9dVaw6w
Raymond Panko, an economist at the University of Hawaii: "94 percent of the worksheets in Excel, arguably the most widely used spreadsheet program, are flawed."
As Raymond Panko, an economist at the University of Hawaii, says, about 94% of the worksheets in Excel, probably the most widely used spreadsheet program, are incorrect. Especially in companies, unfortunately, such errors are very common. Thus, the number of well-known companies and organizations that have to answer for serious errors in this context is large. Oxford University, the US Federal Reserve, JP Morgan Chase and Fidelity Investment are just a few of them. The consequences are often immense.
According to experts, around half of the calculations on which the actions of companies are based are incorrect. But how does the high error frequency come about in companies that should actually know better?
Better quality controls
The problem lies in small part in the lack of quality controls, but in large part in the fact that the spreadsheet was often set up in Excel itself. Using a system that is focused on the procurement process, for example, and designed by professionals for that purpose, would avoid these errors. In this way, the transparency can be created with which inconsistencies in calculations can be noticed and eventually corrected.
Kerkhoff Consulting recognized this opportunity for procurement at an early stage and starts to solve the problems with Procurement 4.0. With the integrated digital overall solution, Kerkhoff Consulting creates transparency and manages the masses of data. The reference articles, indices and other information that are created and collected to determine the optimal purchase prices are played in a cloud and thus remain available and controllable at any time.
The constant use by consultants and companies ensures that this information is always of the highest topicality and thus keeps savings effects in the long term. With regard to the error rate in calculations and also in the topic of compliance, Procurement 4.0 safeguards companies.
