PHOENIX, AZ--(Marketwire - Oct 24, 2012) - Retail, grocery and restaurant buyers without e-sourcing capabilities are operating under a monumental misconception that's hurting their companies' bottom line, according to Intesource's new report -- The Sourcing Confidence Bubble.
A recent Intesource poll of select supply chain executives in the chain industries found that among buyers who are not using e-sourcing, 75 percent are confident that they're getting the best possible value from their suppliers, despite market studies and industry data showing the contrary:
- Aberdeen reports that companies using advanced e-sourcing techniques save an average of 16 percent yearly.
- Intesource's own data shows an average savings of 18 percent per event when using e-sourcing.
"Too many buying organizations are blinded by strategic supplier relationships and traditional sourcing techniques," said Len Kaplan, VP of Sales at Intesource. "Failing to challenge incumbents is a critical mistake that will negatively impact an organization's financial performance. Our own data shows that when challenged, incumbents lower their prices 55 percent of the time."
The pulse survey also uncovered several critical resource issues plaguing buyers that use e-sourcing. About 46 percent of sourcing executives said the number one challenge affecting their sourcing strategy was a lack of internal resources, and more than 65 percent reported that they fail to run as many events as they'd like. How come?
- 43.8 percent claim limited staff resources
- 25 percent blame it on the amount of time it takes to set up and run an event
- 18.5 percent lack new categories to source
"Time is literally money in the supply chain world," said Kaplan. "Most retail, grocery and restaurant sourcing departments are small and resource constrained, which limits the amount of events they can run -- and money they can save."
The Sourcing Confidence Bubble offers insight into how procurement executives can overcome these challenges and generate more value for their organizations. The report takes a closer look at:
- Just how much extra value retailers, grocers and restaurants can drive through advanced e-sourcing, and which categories are the ripest with potential savings.
- Three supply chain strategies that help buyers save more money, increase staff efficiency and source more effectively.
- The most pressing business issues facing supply chain buyers today.
The full report is available free of charge here. For more information, visit www.Intesource.com.
Companies are caught between two opposing goals: drive cost savings or invest in innovation. Both require people, technology, and expertise in a time when resources -- and the skills and time required to source effectively -- are scarce.
Intesource eliminates operational headaches from the sourcing equation by offering the industry's only enterprise wide, unlimited, full-service e-Sourcing package. Intesource's turnkey approach to e-Sourcing consistently drives double-digit savings without requiring additional staff or process overhauls -- an approach that saves valuable time and frees up staff to focus on strategic initiatives.
With a history of success in the most challenging sourcing climates, and expertise in both direct and indirect categories, Intesource ensures that buyers are getting the best value every single time. Learn more at www.Intesource.com.