Willow Grove, Pennsylvania (PRWEB) December 17, 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," said Bill Browning, research analyst, Aberdeen. "Top performing companies can realize strategic benefits such as gaining supplier and market intelligence and streamlining operations, while also delivering cost and process savings."
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. "Source One can provide the professional resources, market knowledge and subject matter expertise to assist companies in achieving Best-in-Class status" said Steven Belli, CEO of Source One.
The benchmark report Procurement Outsourcing: A Strategic Imperative recommends that enterprises should start by evaluating their current capabilities, resources, processes, and technology to establish a baseline to identify outsourcing needs, and then focus on strategic advantages that can be gained in addition to tactical, cost-cutting results.
To obtain a complimentary copy of the report, visit: http://www.sourceoneinc.com/strategic_procurement_outsourcing.html