SOURCE: Aberdeen Group, a Harte-Hanks Company

April 05, 2007 11:10 ET

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

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.

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