Implementing E-Sourcing Best Practices Can Implement More Than 90% of the Saving Negotiated Online, According to New Aberdeen Group Study

Business Wire, Sept 21, 2004

BOSTON -- While more than 80% of Fortune 1000 enterprises have deployed e-sourcing technologies, cost and performance benefits can vary greatly. According to a new study from Aberdeen Group, the typical e-sourcing user strategically sources only half of addressable spending and is unable to implement 20% to 25% of the savings negotiated online. However, those companies sourcing more than 80% of their spending can implement more than 90% of the savings.

The Aberdeen report, "Best Practices in E-Sourcing: Optimizing and Sustaining Supply Savings," is based on a six month investigation of more than 60 of the leading e-sourcing strategies and developments. It provides practical guidance on the organizational structures, strategies, processes, and systems infrastructures required for sustainable e-sourcing success.

"E-sourcing best practice leaders are applying strategic sourcing to a broader portion of overall spending and generating -- and keeping -- more cost savings," said Tim Minahan, senior vice president of supply research & strategy, and author of the report. "The secret to their success is that they apply process discipline, performance and knowledge management, and flexible negotiation methods to their sourcing process. Leaders also secure top-level executive support to guarantee resources and enforce compliance for their sourcing programs."

The 80-page report highlights these e-sourcing success strategies and provides detailed case studies of enterprises demonstrating best practices in electronically enabled sourcing processes. Enterprise e-sourcing deployments profiled in this report include: Alcoa, American Express, Eastman Kodak, ExxonMobil, Delta Airlines, MetLife, Motorola, Owens Corning, and Volkswagen.

For more information about the "Best Practices in e-Sourcing: Optimizing and Sustaining Supply Savings" report, please follow this link: http://www.aberdeen.com/summary/report/other/bp-esourcing.asp

About Aberdeen Group

Founded in 1988, Aberdeen Group is the trusted advisor to the Global 5000 for value chain strategies and technology advice.