Best-in-Class Enterprises Realize 30% Lower Procurement Costs than Peers
According to study sponsored by Source One Management Services, LLC.
WILLOW GROVE, Pennsylvania – December 13th, 2007 – After concluding a survey of over 260 procurement executives, a new study published by the Aberdeen Group (NYSE: HHS) and sponsored by Source One Management Services, LLC http://www.sourceoneinc.com, indicates 40% of enterprises are expected to engage a procurement service provider in the next two years.
Procurement plays an important role as a strategic component in the modern day business. A prior study sponsored by Source One concluded that sourcing deficiencies cost mid-sized enterprises $134 billion annually. Leading companies are looking outside of their organizations for expertise and support in their quest to drive strategic value through the enterprise and deliver results.
According to Aberdeen, Best-in-Class enterprises are excelling in many performance metrics, demonstrating:
- 8.3% savings due to sourcing efforts from outsourcing strategic sourcing
- 30% lower costs to process a requisitions than all other companies
- 55% rate of compliance to contractual agreements
"Our research has discovered that top performing enterprises are more likely to leverage third-party expertise in the form of outsourcing,"
Organizations are constantly searching for ways to bolster bottom-line performance by not only increasing revenue, but also by decreasing the cost of doing business. To facilitate these outcomes, one strategy employed is to leverage the solutions of Procurement Service Providers to streamline business processes and improve operational performance.
The benchmark report “Procurement Outsourcing:
To obtain a complimentary copy of the report, visit:
http://www.sourceoneinc.com/
About Source One Management Services, LLC
Source One is the leading Procurement Service Provider in the mid-market. Source One has been providing on-demand resources for their clients for over 15 years. Engagements may include strategic sourcing, spend analysis, spend rationalization, assistance with statements of work, identification of alternate suppliers, market and supply research, RFP management, price and terms negotiations, and contract recommendations. Source One also owns and operates the free procurement tool website, http://www.WhyAbe.com, which provides free RFX and Reverse Auction Tools, Contract Management, and Stores for suppliers. In order to best service their clients, Source One provides flexible fee options for their consulting services. Clients can choose between contingency (gain sharing) based, fee for service or a hybrid. For more information, visit www.SourceOneInc.com or call 215-902-0200.
