Europe

The primary challenges faced by procurement and sourcing groups based in the EMEA region-to identify and deliver cost reductions, to improve supplier quality, and to increase enterprise-level visibility into spend, all while mitigating risk and driving innovation-will become increasingly difficult in the second half of 2008 according to a new report published by Aberdeen. Despite a global inflationary storm that is gathering momentum, the report finds that strategic sourcing remains one of the surest way for enterprises in the EMEA (Europe, Middle East, and Africa) region to drive cost savings and add strategic value to the enterprise.

The "Strategic Sourcing in EMEA" benchmark report captures the findings of over 230 sourcing professionals representing thirty-three distinct countries in the EMEA region and is designed to serve as a detailed guide for EMEA procurement professionals seeking to improve the quality, speed, depth, volume, and overall savings of their strategic sourcing programs. Aberdeen defines strategic sourcing as the process of identifying, evaluating, negotiating, and implementing the optimal mix of goods and services that best support the objectives of the enterprise, often one of the catalysts for procurement success.

"Sourcing professionals in the EMEA (Europe, Middle East, and Africa) region are locked in a constant battle to identify savings from their efforts while also maintaining high quality and limiting supply risk," said Andrew Bartolini, Vice President of Global Supply Management research, Aberdeen Group. "The participants in this research effort credit their strategic sourcing programs with saving money, driving innovation, mitigating supply risk, and increasing the overall performance of their suppliers."

Best-in-Class enterprises in this study are notable for the breadth and scope of their strategic sourcing efforts and report many benefits as a result, including:

1. 45% more spend under the management (of the procurement organization) than all other enterprises

2. Realized cost savings rates (per sourcing initiative) that are, on average, 40% higher than all other enterprises

Aberdeen recommends that EMEA enterprises should view strategic sourcing efforts as a holistic process, enhance current spend analysis reporting capabilities, and utilize a decision framework that awards contracts based upon a total cost of ownership analysis.
http://www.aberdeen.com