MOUNTAIN VIEW, CA -- (Marketwired) -- 08/12/14 -- Noosh, a provider of web-based integrated project and procurement management technology for business service providers, published its "2014 Project & Procurement Management Benchmark Report," which reveals teams that collaborate and employ collaborative sourcing strategies see significant cost savings per project and manage projects more efficiently.
The report, which is an evaluation of Noosh customer survey data and an analysis of actual projects managed within the Noosh SaaS platform from 2010 to 2013, also highlights the critical function of reporting on processes. Findings show project teams that collaborate on a central platform are able to manage change better and write significantly fewer change orders per project.
"We are pleased with the findings of our 2014 report as they reflect the current trends in the industry and emphasize Noosh's potential for positively impacting the future of project and procurement management," said Ofer Ben-Shachar, CEO of Noosh. "We found that while an average worker manages 250 line items per year, the top Noosh users manage more than three times as many, allowing for a high level of efficiency in collaboration and, in turn, providing the opportunity for growth."
Other findings from the report:
- Collaborative sourcing events lower overall project costs by an average of 20.7 percent. The act of collaborative sourcing (multiple bidding on one central platform) results in 20.7 percent average savings, when comparing the lowest estimate versus the average of all estimates.
- Noosh users manage change better than the industry to reduce costs, resulting in substantially fewer change orders. While 32.6 percent of all professionals surveyed believe change orders are commonplace, findings show 94.7 percent of all order values for Noosh users remain unchanged and only 5.3 percent of all orders have change orders written that result in increased costs.
- Top 20 percent of Noosh users are able to manage more than $7.9 million in transactions per year. The average users are able to manage an average of $1.9 million per year.
- The top 20 percent of Noosh users on average manage 2009 line items or more per year, which is 3.6 times more than the average. Of the surveyed professionals, 44.3 percent say they (or their employees) manage 250 line items or less per year, and 30 percent say they manage less than 175. The average Noosh user, however, manages 553 line items per year.
- An average project team has an average of 6.9 members and collaborates with an average of 4.1 companies per project. The research shows that more collaboration is required to execute higher value projects
- Total quantities per line item are dropping, and percent of small orders is increasing. Custom orders, small runs and targeted marketing campaigns are changing the project and procurement management process. Fifty-one percent of all orders have fewer than 1,000 pieces. Large order quantities remain steady, but mid-size orders are rapidly shrinking.
- Respondents revealed that 31.5 percent of Noosh users receive first estimates within one hour of submitting a request for estimate (RFE). Collaboratively sourcing RFEs on the Noosh platform allows 31.5 percent of users to have a first estimate within one hour, and 50.3 percent see a first estimate within three hours.
The data for this report was analyzed from hundreds of the most successful global brands and represents nearly $12 billion in project management transactions to look at industry-wide trends. The market segments surveyed include marketing and print service providers, engineering services, major syndicated media and enterprise shared services.
Noosh provides the leading software-as-a-service platform for integrated project and procurement management. Noosh's customers, who manage projects and purchase nearly $1.7 billion in services annually on the Noosh platform, include leading print/marketing services providers and enterprises alike including: Ergo Asia, Miller Zell, Point and Workflow One. For more information, please visit www.noosh.com.
Raffetto Herman Strategic Communications for Noosh