56% of Companies Regard Supply Chain Management as a Differentiator or a Profit Center

Market Wire, February, 2008

After an industry-wide survey of more than 800 companies, Aberdeen, a Harte-Hanks Company (NYSE: HHS), published the recent report "The Supply Chain Executive's Strategic Agenda 2008," in which fifty-six percent (56%) of companies regard supply chain management as a market strategy differentiator, a customer service differentiator or as a profit center, as opposed to strictly a cost of doing business. The resulting supply chain transformations are focusing on the following four categories: responsiveness, strategic alignment, collaboration and sustainability.

The report outlined information revealed from supply chain executives about their priorities and strategic intentions across all areas of supply chain management from planning to execution and management. Illustrating key trends in supply chain transformation, the top 3 pressures companies face are cost containment (68% of companies), followed by escalating customer service demands (49% of companies) and the restructuring requirements brought on by the increase in industry acquisition and divesture activity (44% of companies).

Survey results show that the firms enjoying Best-in-Class performance shared several common characteristics involving various aspects of process, reporting, data, technology, etc. Results show that:

--  Best-in-Class companies are 2 times more likely than all others to
    have a formalized supply chain risk management initiative.
--  Best-in-Class companies are 1.5 times more likely than all others to
    have implemented cross-functional metrics across their enterprise.
--  Best-in-Class companies are 2 times more likely to have end-to-end
    supply chain data and process visibility than all others.
--  Best-in-Class companies are 1.7 times more likely than all others to
    have a closed-loop integration of supply chain planning and execution.
    

"Based on numerous interviews in a variety of industries (automotive, consumer packaged goods, high-tech semiconductor, chemicals and healthcare), the technology application areas that participants are prioritizing reflect the challenges driving the dramatic transformation that companies are facing," said Robert Shecterle, Vice President, Supply Chain, Aberdeen. "There was nearly unanimous recognition of the factors driving supply chain transformation such as the globalization of supply, increasing competitive pressures, and dwindling product life cycles," said Shecterle.

A complimentary copy of this report is made available due in part by the following underwriters: CrossGate, Demand Solutions, IBM, JDA, SAP, and Tandberg. To obtain a complimentary copy of the report, visit: http://www.aberdeen.com/link/sponsor.asp?cid=4559 .

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(TM) 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 .

© 2008 Aberdeen Group, Inc., a Harte-Hanks Company
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Boston, Massachusetts 02110-3112
Telephone: (617) 723-7890
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 www.aberdeen.com 

Media Contact: Robert Shecterle Aberdeen Harte-Hanks (925) 264-1832 Robert.shecterle@aberdeen.com