SOURCE: Aberdeen Group a Harte-Hanks Company

February 01, 2007 15:28 ET

Advanced Sourcing -- Why You Don't Need a PhD

Best in Class Enterprises Are 32% More Likely to Employ Advanced Strategies and Realize 40% More Savings Because of Them

BOSTON, MA -- (MARKET WIRE) -- February 1, 2007 -- As the use of basic e-sourcing strategies reaches saturation levels, enterprises must utilize advanced sourcing capabilities to maintain the momentum of their earlier successes, according to "The Advanced Sourcing and Negotiation Benchmark Report" published today by Aberdeen, a Harte-Hanks Company (NYSE: HHS).

"Initial e-sourcing waves resembled a corporate 'crash diet' leaving an immediate and noticeable impact on the enterprise; the challenge now is to build a program that keeps the weight off," notes Andrew Bartolini, research director of Aberdeen's Global Supply Management practice. "Enterprises that employ advanced sourcing strategies are building stronger supplier relationships and positively impacting product development cycles by making better, more informed decisions. They are also driving innovation and saving more money than their competitors."

Aberdeen's report highlights tangible, real-world examples of how leading procurement organizations are employing advanced sourcing capabilities in a series of case studies. The report also shows that, on average, companies:

--  Identify savings of 11.9% per sourcing event
--  Realize savings of 9.4% per sourcing event (i.e. savings that are
    implemented)
--  Utilize a formal strategic sourcing process on 43% of their total
    spend
--  Utilize e-sourcing across 20% of their total spend
    
The report also shows that Best-in-Class enterprises use formal strategic sourcing and e-sourcing processes to drive greater e-sourcing throughput and achieve higher average savings and provide greater overall value to the enterprise. They are also 32% more likely to employ advanced sourcing strategies and declare a 54% edge in their proficiency in their usage, leading to realized savings results that are 40% better than their peers.

This report is made available to the public, in part, by the underwriting support of Iasta, CombineNet, SAP, Verticalnet, and UGS. To download a complimentary copy of "The Advanced Sourcing and Negotiation Benchmark Report," please visit: http://www.aberdeen.com/link/sponsor.asp?cid=3857

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.

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