Aberdeen releases strategic sourcing report
PURCHASINGB2B MAGAZINE: MAY/JUNE 2011
Research house Aberdeen Group has released a study looking at best-in-class strategic sourcing.
According to the report, strategic sourcing is a high-value component of companies’ overall spend management activities, and is increasingly being linked with the larger objectives of the organization.
The report looks at the intentions, performance and strategies of 315 enterprises around the world, interviewed in February and March 2011.
Aberdeen used three key criteria to determine best-in-class performance. These were: spend under the management of the procurement group, procurement contract compliance and realized cost savings.
The best-in-class companies demonstrate the following characteristics: 72-percent higher procurement contract compliance than all other companies; a 52 percent higher rate of realized or implemented cost savings; and a 37 percent higher rate of spend under management.
Other common characteristics of the best-in-class companies are a 47-percent higher likelihood of initiating collaboration between key internal units, and a 36 percent higher likelihood of leveraging an active spend management program.
Based on its findings, Aberdeen says to achieve best-in-class performance, companies must use e-sourcing solutions to drive savings and automate strategic sourcing processes, use spend analytics to drive visibility into corporate spending and forecast savings for future planning and budgeting, and align sourcing activities with the organization’s overall goals.
For more information on “The State of Strategic Sourcing” visit www.aberdeen.com.
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Aberdeen releases strategic sourcing report
