BOSTON, MA--(Marketwire - Apr 12, 2011) - Strategic sourcing remains a viable strategy for companies to improve bottom-line performance as they enter a new decade of business management. Nearly 60% of organizations see high value in this classic procurement function, according to a new study published by the Aberdeen Group, a Harte-Hanks Company (
The State of Strategic Sourcing report, which evaluated the performance, intentions and strategies of over 315 organizations from across the globe, found that although strategic sourcing is a formidable function in improving corporate performance, the average company loses nearly 2.7% of their identified cost savings to savings leakage, a problem that threatens to detail sourcing efforts.
"The current state of strategic sourcing finds that companies are still focusing their efforts on strategic purchasing activity and will continue to utilize this function in the decade ahead," said Christopher Dwyer, research analyst, Aberdeen. "However, their programs are resulting in a critical savings leakage problem, which can be corrected by improving contract management processes and ensuring that spend analytics is linked to extracting intelligence within key financial metrics."
The State of Strategic Sourcing research study detailed a series of key recommended actions that can help underperforming organizations reach a top-tier level of sourcing performance, such as the institution of collaboration between procurement and finance, enhancement of spend analysis capabilities, and automation of crucial procurement contract lifecycle management processes.
A complimentary copy of this report is made available due in part by the following underwriters: CombineNet and Zycus. To obtain a complimentary copy of the report, visit: http://www.aberdeen.com/link/sponsor.asp?spid=30410182&cid=6863&camp=2.
Visit 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.
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