SOURCE: Aberdeen Group

Aberdeen Group

June 10, 2009 10:00 ET

Balancing Working Capital and Customer Service Through Inventory Management

91% of Survey Respondents Are Actively Re-Evaluating Their Inventory Management Processes

BOSTON, MA--(Marketwire - June 10, 2009) - Aberdeen Group, a Harte-Hanks Company (NYSE: HHS), announced the release of its recent report, "Inventory Management: 3 Keys to Freeing Working Capital." This study in which 170 survey respondents participated confirms that inventory management processes and technologies are being actively re-evaluated by companies today by 91% of companies. In addition 61% of respondents say they have made, or have been asked to make, inventory-related technology recommendations within the past six months.

"Companies are looking for practical initiatives that can unlock working capital while maintaining customer satisfaction," said Nari Viswanathan, vice president and principal analyst, Aberdeen. "With 62% of companies reporting a drop in customer demand over the past year, focusing on inventory reduction is critical in a highly working capital constrained environment due to the credit crunch. But the reduction in inventory should not be done at the cost of broader issues such as customer service levels and profit margins."

Based on their responses, companies were classified into three groups: Best-in-Class, Industry Average, and Laggards. The highest-performing companies achieved a 96% customer satisfaction level, had a cash conversion cycle time of 15 days, and were able to achieve 87% forecast accuracy at the product family level.

A complimentary copy of this report is made available due in part by the following underwriters: Demand Solutions and Supply Chain Consultants. To obtain a complimentary copy of the report, visit: http://www.aberdeen.com/link/sponsor.asp?cid=5965.

Visit Research.Aberdeen.com for additional access to complimentary SCM 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.

© 2009 Aberdeen Group, Inc., a Harte-Hanks Company
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