Contact Information: Media Contact: Beth Enslow Aberdeen Harte-Hanks 519-883-1430 Beth.enslow@aberdeen.com
Three-Quarters of Process Industry Companies Redesigning Their Supply Chains
Aberdeen Study Finds That Companies Reducing Supply Chain Costs Are Taking Dramatically Different Actions in Organization Structure and Technology Usage
| Source: Aberdeen Group, a Harte-Hanks Company
BOSTON, MA -- (MARKET WIRE) -- April 5, 2007 -- To avoid a 7.96% increase in logistics costs
(what the average process industry company has experienced in the past two
years), companies should follow the roadmap of Best in Class companies,
which have been able to reduce costs or keep them flat via supply chain
transformation. These are the findings of a study of 74 process industry
companies conducted by Aberdeen, a Harte-Hanks Company (NYSE : HHS ). Process
industry companies include those in the chemicals, pharmaceuticals, food &
beverage, oil & gas, and pulp & paper sectors.
"Although three-quarters of all process industry companies are focusing on
supply chain transformation, we found that Best in Class companies are
strikingly ahead of their peers in achieving their transformation goals,"
says Beth Enslow, Aberdeen SVP of Enterprise Research and report author.
"They are four times more likely than their lower-performing peers to have
established a centralized supply chain management organization and to have
achieved data and process visibility across their supply chain, enabled by
their higher adoption rate of technology."
This study found a tremendous gap between Best in Class organizations and
their peers. Best in Class companies have a 2.5X to 9X advantage in key
performance improvements, including advancements over the past two years in
forecast accuracy, perfect order percentages, and manufacturing and
logistics costs. They also have better absolute performance: Best in Class
companies are twice as likely to have logistics costs as a percentage of
sales of 6% or less, have a perfect order percentage of 91% or better, and
have a product family-level forecast accuracy of 71% or better.
This research report is underwritten in part by Infor, SAP, Microsoft and
Supply Chain Consultants. To download a complimentary copy of "Supply Chain
Cost-Cutting Strategies: How Top Process Industry Performers Take Radically
Different Actions," for a limited time please visit:
http://www.aberdeen.com/link/sponsor.asp?cid=3962
About Aberdeen Group, a Harte-Hanks Company
Aberdeen is a leading provider of fact-based research and market
intelligence that delivers demonstrable results. Having benchmarked more
than 30,000 companies in the past two years, Aberdeen is uniquely
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 http://www.aberdeen.com or call (617) 723-7890, or to learn more
about Harte-Hanks, call (800) 456-9748 or go to http://www.harte-hanks.com.