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Business Intelligence

Staff -- Purchasing, 8/17/2006

75%

Firms lacking global supply chain automation

Source: Aberdeen Group

What it means: Aberdeen says the lack of visibility and control not only creates longer lead times and higher inventory but impacts corporate risk levels and financial performance.

90%

Companies with SRM challenges

Source: Archstone Consulting

What it means: Among those challenges are inconsistent and overly tactical SRM practices (58% of procurement orgs reported these) and an inability to hold suppliers accountable or ineffective use of incentives and penalties (58% also have this challenge).

17%

Buyers increasing overseas spending in July

Source: www.purchasingdata.com

What it means: The July survey showed a dramatic drop in this metric from the 31% of buyers that reported increasing offshore sourcing in June. Possible reasons are high transportation costs or just the summer blahs.

23%

Large companies indicating they were interested in hosted SCM tools

Source: AMR Research

What it means: Security concerns are gone. Software-as-a-service is gaining a foothold in the big companies used to owning and controlling its applications. In the same study, companies with less than $1B in revenue (30% of respondents) said they will consider a hosted option in 2006.

75%

Buyers reporting commodity price increases in July

Source: www.purchasingdata.com

What it means: The increase from 71% in June indicates an uptick in July pricing. Most buyers say suppliers cite energy and transportation costs as the culprit. And what does the future hold? Forty-two percent of buyers polled in July plan to increase spending, down only one percentage point from the month before.

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