Findings suggest many improvements can still be made to streamline cost reduction
INDIANAPOLIS, January 11, 2006-Iasta.com, Inc., the leading provider of e-Sourcing tools for the retail sector, today announced that it had released the findings of its recent e-Sourcing Benchmark Diagnostic report. This information was collected over a two month period in Q4 of 2005 and included almost fifty detailed questions that were asked of supply chain and purchasing professionals. The focus of the study was to determine industry vertical and general benchmarks regarding the implementation of strategic sourcing best practices and implementation of e-Sourcing tools.
Specifically, in the retail sector, some of the following conclusions were drawn:
1. 60% of retail companies surveyed have conducted conducting reverse auctions; this represents the lowest figure of all industries reviewed and shows missed cost saving opportunities.
2. Retail is one of the two industries that consistently have very complicated award decisions but most companies lag behind on implementing an optimization tool versus using traditional manual processes.
3. Almost 70% of the respondents said that price was the single greatest reason why they would switch suppliers, the highest percentage of all markets surveyed. Of the industry segments measured, retail scored the lowest in using reverse auctions. These statistics show a critical missed opportunity for e-Sourcing to deliver cost savings and efficiency.
Jason Treida, VP Operations of Iasta, and leader of the team that developed and administered the benchmark commented, "There is very clear data that shows companies are making steps towards effective strategic sourcing but there is still much to be done. In particular, the retail industry can make some very significant and cost effective changes to impact the sourcing lifecycle and drive cost savings."
Iasta also announced that it would have an exhibit at the upcoming National Retail Federation - BIG SHOW `06, in New York City (January 16-17), where it would be discussing the findings of the survey in detail and will offer demonstrations or expertise to members of the retail supply chain community about e-Sourcing. Iasta will have booth space #767.
Based in Indianapolis, Iasta is a leading global provider of sourcing software and service solutions. As a significant provider of e-Sourcing applications and services, Iasta has amassed an impressive client list of more than 60 companies, most of which are within the Fortune 1000. Through its unique combination of industry-leading web-based software, in-depth supply market information, and implementation of sourcing best practices for supply chain management, Iasta has helped customers` source goods and services with an average cost reduction of 17 percent, in addition to significant reductions in sourcing cycle times. For more information about Iasta, please visit www.iasta.com or call 317.594.8600. For more information regarding the Iasta blog, which covers events and issues in the e-Sourcing industry, please visit www.esourcingforum.com.
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