Advanced Sourcing and Negotiations Success Strategies: Early Adopters Now Tackling Complex Spend Categories; One-Third of Companies Plan to Follow Early Adopters' Lead, Reaping Incremental Total Cost Savings of 12% Beyond Auctions Alone.BOSTON Boston, town, England Boston, town (1991 pop. 26,495), E central England, on the Witham River. Boston's fame as a port dates from the 13th cent., when it was a Hanseatic port trading wool and wine. Having recovered from a decline in the 18th and 19th cent. -- Four in five Fortune 1000 companies have experimented with e-sourcing The electronic procurement of products. Although purchases have been computerized for decades, e-sourcing implies more automatic procedures; especially dealing with contracts and processes that continue to be reviewed and managed entirely by individuals. See TCM and supply chain management. tools, but only one in five has experience with sophisticated sourcing and negotiation tools and techniques, such as flexible bidding and optimization optimization Field of applied mathematics whose principles and methods are used to solve quantitative problems in disciplines including physics, biology, engineering, and economics. , according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Aberdeen's new research report, "Success Strategies in Advanced Sourcing and Negotiations: Optimizing Total Costs and Total Value for the Next Wave of e-Sourcing Savings." Early adopters profiled include Alcan, HJ Heinz, Merck & Co., Inc., Nationwide, and Siemens. These companies' deployments are generating 12% incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. savings beyond what can be gained from reverse auctions alone. "The experiences of these early adopter companies provide a roadmap for the fast-follower companies now moving to adopt these tools and techniques. As companies reach the point of diminishing returns diminishing returns the characteristic of any production system in which increases in variable inputs result in increasing reduction of total output. An indicator of when to stop making additional inputs to the system, when the input exceeds the additional output. from reverse auctions, they'll look to derive the next wave of e-sourcing savings," said Richard Waugh Richard Waugh is one of the more recent voice actors for Albert Wesker in the video games , Resident Evil 0 and Resident Evil 4. He has lent his voice throughout Capcom's Resident Evil, for which he has been thanked and acknowledged. , Vice President of Supply Management and author of the report. "The solutions themselves are much more intuitive and user-friendly, making them more accessible and applicable to a broader range of spend categories." The report examines best practices adopted by market leading companies to: --Implement solutions that combine the "art" (intelligence in the form of cost models, supply market knowledge and constraint Constraint A restriction on the natural degrees of freedom of a system. If n and m are the numbers of the natural and actual degrees of freedom, the difference n - m is the number of constraints. analysis) and the "science" (collaborative tools and advanced analytics). --Encourage supplier innovation and creativity through "flexible bidding." --Reward suppliers for superior quality or product innovation by applying "innovation credits" and other bonuses to supplier proposals to improve their bids. --Leverage optimization tools and constraint analysis to address demand and specification management on the front end, where as much as 80% of product life-cycle costs are "designed in." The report also provides best practices, recommendations, and case studies. To obtain a complimentary copy of the report, please follow this link: http://www.aberdeen.com/link/sponsor.asp?cid=1947 About AberdeenGroup, Inc. AberdeenGroup provides fact-based research and insights focused on the global, technology-driven value chain. Aberdeen's benchmarking, market and solution assessments, sales acceleration programs, and conferences support Global 5000 value chain and technology executives -- and the solution providers who serve them. For more information, visit www.aberdeen.com or call 617-723-7890. |
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