The Value of Strategic Sourcing in a New Economy

New Study Finds That Enterprise Sourcing Teams Need to Discover New Methods of Driving Cost Savings


BOSTON, MA--(Marketwire - April 8, 2010) -  With the procurement department being thrust into a strategic limelight as a means of driving operational performance, 2010 sees enterprises struggling to discover, identify and drive new means of cost savings within their corporate spending, according to a new research study published by Aberdeen, a Harte-Hanks Company (NYSE: HHS).

The Strategic Sourcing: The 2010 Guide to Driving Savings and Procurement Performance research report, which gauged the sourcing programs, processes, and performance of over 400 enterprises, found that in a time of economic recovery, enterprises are adamantly focused on driving cost reductions through their strategic sourcing efforts. Although there is a zeroed-in cost savings focus, the new research study found that nearly 2.2% of the average's cost savings are lost due to savings leakage.

"Savings leakage is a prime concern for enterprises in the midst of economic recovery," said Christopher Dwyer, research analyst, Aberdeen. "Gaps in technology and process, as well as a failure to conduct due diligence and apply efficiencies in contract lifecycle management, are causing organizations to lose a significant chunk of their identified savings."
The new study found that Best-in-Class enterprises, who have effectively placed nearly 32% more of their spend under the management of the procurement group than all other organizations, have leveraged a series of best practices and technology solutions, such as e-sourcing and spend analysis, to avoid the savings leakage concern and drive over 10% cost savings to the bottom-line. These top-performers are:

  • 51% more likely to engage in collaboration with other internal units than all other organizations

  • 30% more likely to have standardized sourcing processes

  • 29% more likely to automate their spend analysis systems

A complimentary copy of this report is made available due in part by the following underwriters: EC Sourcing and Zycus. To obtain a complimentary copy of the report, visit: http://www.aberdeen.com/link/sponsor.asp?spid=30410182&cid=6305&camp2

Visit Research.Aberdeen.com for additional access to complimentary Global Supply Management Research.

About Aberdeen Group, a Harte-Hanks Company

Aberdeen provides fact-based research and market intelligence that delivers demonstrable results. Having queried more than 30,000 companies in the past two years, Aberdeen is positioned to educate users to action: driving market awareness, creating demand, enabling sales, and delivering meaningful return-on-investment analysis. As the trusted advisor to the global technology markets, corporations turn to Aberdeen for insights that drive decisions.

As a Harte-Hanks Company, Aberdeen plays a key role of putting content in context for the global direct and targeted marketing company. Aberdeen's analytical and independent view of the "customer optimization" process of Harte-Hanks (Information - Opportunity - Insight - Engagement - Interaction) extends the client value and accentuates the strategic role Harte-Hanks brings to the market. For additional information, visit Aberdeen or call (617) 854-5200, or to learn more about Harte-Hanks, call (800) 456-9748.

(C) 2010 Aberdeen Group, Inc., a Harte-Hanks Company
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