IDC study: Zip increases productivity by 25% per employee

At Zip, we’re committed to increasing the pace of innovation for every business in the world.

We believe the future of procurement requires an orchestrated, AI-powered approach which guides processes, reduces or eliminates dependency on manual workflows, and enables seamless integrations across existing best-of-breed systems.

This is why we’re proud to see the recent IDC Business Value report on our Procurement Orchestration platform validate our efforts.

IDC conducted in-depth interviews with five organizations using Zip and uncovered transformational results. These Zip-powered global enterprises represented customers with significant employee counts and annual revenue:

• Average number of employees: 3,780 (median of 4,200)
• Average annual revenue: $1.68 billion (median of $1.5 billion)
• Average annual vendor and third-party spending: $478.57 million (median of $500 million)

Here are some of the standout findings from the IDC Report that represent the immense value Zip provides:

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Significant financial gains

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IDC uncovered that the sample customers using Zip realized an annual benefit of $14.02 million. This impressive figure is a result of the financial advantages offered by our orchestration platform, enabling 3.6% spending savings of total spend under management, and optimizing indirect spending.

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Enhanced spend management

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Zip enables organizations to bring an average of 78% of their indirect spend under management, with a 47% increase in spend under management. The enhanced visibility allows for better oversight and adherence to procurement policies, reducing issues of rogue or non-compliant spend.

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Remarkable cost savings

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Our platform helps companies save an average of $13.72 million annually, or a 3.6% annual spend savings, by minimizing unnecessary and duplicative spend.

“With Zip, we have greater visibility and can track and trace duplicate vendors or vendors with which we should not be spending. It has improved overspending by referring employees to existing vendors in place versus adding new ones.” _{- IDC Participant}

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Improved compliance and risk reduction

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Organizations using Zip found a 121% increase in purchases meeting organizational requirements, significantly reducing compliance and payment-related risks. This ensures that spending decisions are aligned with organizational rules and policies, mitigating the risk of fraudulent agreements and operational disruptions.

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Increased productivity

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Zip's user-friendly interface and seamless integration lead to 55% faster procurement cycles, along with a 25% increase in overall employee productivity within procurement teams.

“With Zip, we’ve been going from a wild west-type environment to a defined and efficient procurement process. In terms of the time spent on vendor management approval with Zip, it's gone to zero.”  _{- IDC Participant}

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What does IDC have to say about Zip?

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These remarkable figures only scratch the surface of the IDC Business Value Report. From enhanced vendor management to substantial cost savings, Zip is setting the global standard for procurement orchestration.

Curious to know what IDC recommends? Download the full report to learn more about the incredible value Zip can provide for businesses looking to compete more effectively.