Strategic Sourcing in EMEA: Delivering Value in Good Times and in Bad

Market Wire, June, 2008

The primary challenges faced by procurement and sourcing groups based in the EMEA region -- to identify and deliver cost reductions, to improve supplier quality, and to increase enterprise-level visibility into spend, all while mitigating risk and driving innovation -- will become increasingly difficult in the second half of 2008 according to a new report published by Aberdeen, a Harte-Hanks Company (NYSE: HHS). Despite a global inflationary storm that is gathering momentum, the report finds that strategic sourcing remains one of the surest way for enterprises in the EMEA (Europe, Middle East, and Africa) region to drive cost savings and add strategic value to the enterprise.

The "Strategic Sourcing in EMEA" benchmark report captures the findings of over 230 sourcing professionals representing thirty-three distinct countries in the EMEA region and is designed to serve as a detailed guide for EMEA procurement professionals seeking to improve the quality, speed, depth, volume, and overall savings of their strategic sourcing programs. Aberdeen defines strategic sourcing as the process of identifying, evaluating, negotiating, and implementing the optimal mix of goods and services that best support the objectives of the enterprise, often one of the catalysts for procurement success.

"Sourcing professionals in the EMEA (Europe, Middle East, and Africa) region are locked in a constant battle to identify savings from their efforts while also maintaining high quality and limiting supply risk," said Andrew Bartolini, Vice President of Global Supply Management research, Aberdeen Group. "The participants in this research effort credit their strategic sourcing programs with saving money, driving innovation, mitigating supply risk, and increasing the overall performance of their suppliers."

Best-in-Class enterprises in this study are notable for the breadth and scope of their strategic sourcing efforts and report many benefits as a result, including:

--  45% more spend under the management (of the procurement organization)
    than all other enterprises
--  Realized cost savings rates (per sourcing initiative) that are, on
    average, 40% higher than all other enterprises
    

Aberdeen recommends that EMEA enterprises should view strategic sourcing efforts as a holistic process, enhance current spend analysis reporting capabilities, and utilize a decision framework that awards contracts based upon a total cost of ownership analysis.

A complimentary copy of this report is made available due in part by the following underwriters: SAP, Wax Digital, and Zycus. To obtain a complimentary copy of the report, visit: http://www.aberdeen.com/link/sponsor.asp?cid=4669 .

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
260 Franklin Street
Boston, Massachusetts 02110-3112
Telephone: (617) 723-7890
Fax: (617) 723-7897
 www.aberdeen.com 

Media Contact: Andrew Bartolini Aberdeen Harte-Hanks (617) 854-5310 andrew.bartolini@aberdeen.com