Technology Solution Deployment and Integration Continue to Lead the Way in Improving Performance for the Agile Warehouse

Market Wire, June, 2008

Aberdeen, a Harte-Hanks Company (NYSE: HHS), published its latest report on the current and future state of warehouse processes and technology. The report, entitled "Agile Logistics: Transforming the Distribution Center," highlights the pressures facing warehouse professionals as they seek to support increased sales without increasing staffing or space. With this research, warehouse managers interested in benchmarking their performance and implementing changes to processes or technology will find a roadmap to achieving Best-in-Class performance.

Research results from warehouse respondents across industries reveal that 97% of all companies surveyed are redesigning their warehouse in the next 24 months, with 56% of Best-in-Class companies improving operations in the next 12 months. In order to better align warehouse operations with overall business objectives as part of this redesign, 67% of those surveyed plan to start with improving warehouse processes, with 32% planning to upgrade or enhance their warehouse management software.

A key finding in the report that truly differentiates Best-in-Class performance is centralized direction of processes within the warehouse, currently practiced by 78% of Best-in-Class companies. More importantly, over two-thirds of these companies maintain centralized control with commercial Warehouse Management Software (WMS). Aberdeen's research has continuously shown WMS solutions to be enablers of cost reduction and process improvement. However, despite the benefits and advantages delivered with a WMS implementation, Aberdeen's research also shows that 68% of Laggard companies still utilize paper or spreadsheets to manage their warehouse(s).

As a result of the slow WMS adoption rate among Laggard organizations, Aberdeen sees them behind the curve in the utilization of value-added services, warehouse process optimization, mobile device adoption, and reverse logistics, which the report discusses in more detail. While these companies focus on automating their data collection and report generating capabilities, Best-in-Class companies are exploring ways to improve throughput and labor efficiency, and extend their WMS investments.

Extending core WMS benefits through integration with other warehouse systems provides significant opportunity for improved agility and cost savings. By 2009, Aberdeen expects over 50% of Best-in-Class companies to be using or have implemented additional warehouse technology such as Labor Management Software, Ruggedized Mobile Computers, Voice Technology, Yard and Dock Management, and Slotting Optimization. The utilization of Material Handling Equipment, including case or pallet handling Automated Storage and Automated Retrieval (AR/AS), is another top growth area over the next 24 months.

"Despite the economic slowdown, companies that are truly looking to create Best-in-Class distribution centers are taking advantage of the next wave of process and technology investments in order to create greater agility and reliability," said Bob Shecterle, SVP/Group Director - Research, Aberdeen. "The greater the agility, the greater the ability to react quickly and effectively to uncertainty. With technology and processes improvements, today's leading distribution centers are delivering greater value without increasing costs; the real difference maker."

A complimentary copy of this report is made available due in part by the following underwriters: C3, Forte, Manhattan Associates, and Vocollect. To obtain a complimentary copy of the report, visit: http://www.aberdeen.com/link/sponsor.asp?cid=4877 .

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