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19 June 2012 | Kamalpreet Badasha
More than three quarters of the best performing companies employ formal strategic sourcing processes to reduce costs and maximise savings, according the Aberdeen Group.
Its report, Advanced Sourcing: Maximising Savings Identification, identified common characteristics among the firms classified as ‘best-in-class’, compared with the ‘industry average’ and worst-performing companies, known as ‘laggards’.
Formal strategic sourcing processes were employed by 76 per cent of the tops firms, considerably more than the 29 per cent of laggards that did so. The best-performing firms also led the way on sustainable sourcing, using 32 per cent of their total company spend, in comparison to 11 per cent of laggards, according to the report, which surveyed 140 organisations.
Recommendations for companies wishing to achieve best-in-class performance involve establishing formal strategic sourcing processes, using e-sourcing technology and investing in sustainable sourcing initiatives to make long-term savings.
The survey was conducted worldwide between April and May 2012 and primarily surveyed buyers in a range of industries such as healthcare, consumer packaged goods and financial services.