Demand Management in Process Industries: Strategies for Being Demand Driven in a Globalized Economy

Best-in-Class Companies Are 1.5 Times More Likely Than All Other Companies to Be Able to Forecast Based on Attribute

 | Source: Aberdeen Group Aberdeen Group

BOSTON, MA--(Marketwire - October 7, 2008) - Aberdeen, a Harte-Hanks Company (NYSE: HHS), examines how process manufacturers must increase responsiveness to deal with demand fluctuations in an unstable market. Long manufacturing lead-times combined with extended global supply chains make responsiveness a key performance criterion in this industry. The inputs of over 140 process manufacturing companies are examined within the report titled, "Demand Management in Process Industries: Strategies for being Demand Driven in a Globalized Economy." To obtain a complimentary copy of the report, visit: http://www.aberdeen.com/link/sponsor.asp?cid=5294.

"Supply chain executives in the process industry sector are primarily concerned with being able to drive volumes in accordance with previously established plans, as well as with maximizing the utilization of assets," says Nari Viswanathan, Vice President/Principal Analyst, Aberdeen. "Asset intensive manufacturing operations is a key common theme across process industries. These volumes are determined at the beginning of the year and the channel and sales organizations march to these goals. Volume, however, cannot be looked at as an end unto itself; it must be considered the means by which the business plans for profitability, market share, Return on Invested Capital (ROIC), or other return on investment measures. Demand management processes should be then adjusted to attain these goals through becoming as close to customer demand as possible in their environment."

Aberdeen used four key performance criteria to distinguish the Best-in-Class from Industry Average and Laggard organizations: 

--  Finished goods inventory turns per year
--  Customer service levels (on-time and complete to the customer's
    requested date)
--  Gross profit margin
--  Average forecast accuracy at the product family level

Survey results show that the firms enjoying Best-in-Class performance shared several common characteristics: 

--  Best-in-Class companies are 1.5 times more likely than all other
    companies to be able to forecast based on attribute
--  Best-in-Class companies are two times more likely than all others to
    be able to convert forecasts at product category / family level down to the
    SKU level
--  Best-in-Class companies are three times more likely than all others to
    be able to create single demand forecasts with inputs from multiple roles
    within the organization
--  Best-in-Class companies are five times more likely than all others to
    be able to measure end to end planning lead-times

A complimentary copy of this report is made available due in part to the following underwriters: Infor, SAP, and Supply Chain Consultants. To obtain a complimentary copy of the report, visit: http://www.aberdeen.com/link/sponsor.asp?cid=5294.

To access all of Aberdeen's complimentary research please visit http://research.aberdeen.com.



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. 

© 2008 AberdeenGroup, Inc., a Harte-Hanks Company
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Contact Information: Media Contact: Nari Viswanathan Aberdeen Harte-Hanks (617) 854-5293 nari.viswanathan@aberdeen.com