Industry Research Report Indicates Advanced Sourcing Improves Spend Under Management
Advanced sourcing solutions address multiple organizational objectives: compliance, sustainability, risk management, saving money
PITTSBURGH, June 13, 2012 /PRNewswire/ -- Findings from the recently released Aberdeen Group Sourcing Research Benchmark Report "Advanced Sourcing: Maximizing Savings Identification" indicate that greater use of advanced sourcing methodologies and technology leads to increased spend under management through a formal sourcing process and, as a result, generates higher average annual savings.
CombineNet, Inc., through its advanced e-sourcing product CombineNet ASAP®, delivers the leading capabilities highlighted in the Aberdeen report in the areas of sourcing optimization, total cost analysis of supplier bid data, support for sustainable sourcing, and integration.
Citing survey results gathered from more than 140 global companies and ranked within one of three performance categories (Best-in-Class, Average and Laggards), the Aberdeen report finds that Best-in-Class enterprises are:
- 1.6 times more likely than Industry Average companies and 6.3 times more likely than Laggards to be using sourcing scenario optimization for "what if" bid analysis.
- Running almost twice as many e-sourcing events annually than industry average, and four times as many than industry laggards.
- More than twice as often collecting non-price terms with bids for improved decision making as compared to industry laggards.
Interestingly, even the Best-in-Class have a sizable opportunity to create more value. The research results illustrate that those leaders report only 33% of total spend is managed through e-sourcing, compared to 29% for Industry Average and 12% for Laggards.
Aberdeen Group's Research Analyst in Global Supply Management and author of the report, Constantine G. Limberakis, said, "Those companies leading the way have recognized that the use of advanced strategic sourcing solutions can provide a more holistic picture to address sourcing needs. Having a highly automated solution for strategic sourcing, sourcing optimization, and bid analysis provides a powerful combination of artificial intelligence to understand various business scenarios from which to make better sourcing decisions."
"The CombineNet ASAP sourcing product delivers on the types of advanced sourcing techniques called out in Aberdeen Group's sourcing report. Advanced sourcing, as this report shows, can do more than reduce costs: it can address wider organizational objectives such as compliance, sustainability, risk management and much more," said Rich Wilson, Chief Executive Officer of CombineNet. "And with only a small portion of spend handled through today's general-purpose e-sourcing tools, there is a tremendous opportunity for sourcing teams to drive substantial value for their companies with the right technology in place."
Other Aberdeen Group report findings:
- 46% of Best-in-Class use e-sourcing for bid collection and aggregation, compared to only 27% of all others.
- Best-in-Class are more likely than the other categories to use e-sourcing for event analysis (46% compared to 25% for all others) and event creation (42% compared to 28% for all others).
- Overall identified benefits of a strategic sourcing program are: increased level of cost savings (72% of all respondents), better alignment of sourcing and business objectives (54%) and more robust management of key spend categories (49%).
To access the Aberdeen report, please visit: http://www.aberdeen.com/Aberdeen-Library/7398/RA-strategic-sourcing-management.aspx
CombineNet and Aberdeen will co-host a Webinar June 27, 2012, discussing highlights of the report and implications for industry. To register for the webcast, please visit: http://event.on24.com/r.htm?e=481638&s=1&k=0EC8C27E43ECEC6E0E28DFF268C6ACFD&partnerref=abpr
CombineNet, Inc. delivers award-winning best-in-class e-sourcing software solutions through its products CombineNet ASAP® for advanced e-sourcing, CombineNet Spend Analysis, and CombineNet Contract Management. Using these Software-as-a-Service (SaaS)-based sourcing products, CombineNet customers can rapidly adopt proven solutions for increasing spend under management and improving enterprise spend insights. Now in its twelfth year in business, CombineNet is known for its track record in driving significant bottom-line and productivity savings for its clientele which includes: Procter & Gamble, General Mills, Sears, Johnson & Johnson, A.P. Moller-Maersk, Bayer, Coca-Cola, PepsiCo, Reckitt Benckiser, AstraZeneca, and many more Global 2000 firms. www.combinenet.com
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