Low-Cost Country Sourcing to Climb 130 Percent Despite Growing Risks, Says New Study Sponsored by Procuri

ATLANTA--(BUSINESS WIRE)--A new research study of 120 purchasing, supply chain and business executives finds that goods and services purchased from suppliers in offshore and emerging markets will increase 130 percent by 2010, despite rising risks and challenges of sourcing from those regions.

“Globalization and technology have conspired to rapidly change the fabric of how companies buy, sell and compete -- across the street and around the world”

Conducted by Supply & Demand Chain Executive, the study, “Global Supply Management: Strategies for Success in the New World Economy,” outlines the top global supply strategies and priorities cited by purchasing and supply chain executives for the next 36 months. It also reveals the global sourcing, supplier and technology management approaches utilized by top-performing supply management groups.

Top initiatives in today’s globalized economy demonstrate the increasingly important role that purchasing and supply chain divisions play within the enterprise, as they strive to:

Improve supplier development, collaboration, and risk management capabilities
Transition to a centralized or center-led procurement organization, and improve the skills and talent of the procurement organization
Locate, secure and manage low cost country suppliers
Improve and standardize supply management technology infrastructure

The report -- sponsored by Procuri, the leading provider of On Demand Supply and Contract Management solutions -- outlines a practical and integrated roadmap for organizations to capitalize on the opportunities that globalization presents, while minimizing risks. In fact, the study found that companies embracing the above strategies outperformed their peers in cost reductions achieved by more than 50 percent and reported greater spend under management. In addition, supply management organizations using technology reported such benefits while having 27 percent lower cost of operations than their peers.

“Globalization clearly is challenging our readers to adopt innovative approaches, advanced skill sets and new technologies in response to increasing competitive pressures at home and abroad,” said Andrew K. Reese, editor of Supply & Demand Chain Executive. “This survey also reveals that leading enterprises are beginning to focus on socially and environmentally responsible business practices as a way of mitigating the risks that the global supply chain entails.”

China: A Market of Complexity and Opportunity

The Supply & Demand Chain Executive study reveals an interesting trend: Over 80 percent of companies expect to increase sourcing from China over the next three years, even while survey respondents rank China among the most difficult regions in which to effectively select, on-board and manage suppliers. China’s appeal continues to outweigh the risks, driven by access to lower manufacturing and service costs, and proximity to a large and growing domestic market.

“Globalization and technology have conspired to rapidly change the fabric of how companies buy, sell and compete -- across the street and around the world,” said Tim Minahan, senior vice president of Procuri. “This study brings some much-needed clarity on how globalization is impacting supply operations and what the top-performing companies are doing to capitalize on the global opportunity.”

For a free copy of the report that addresses the current global supply management trends, top priorities and concerns, and critical success factors for supply management executives, visit: www.procuri.com.

About S&DCE

Supply & Demand Chain Executive is the executive’s user manual for successful supply and demand chain transformation, utilizing hard-hitting analysis, viewpoints and unbiased case studies to steer executives and supply management professionals through the complicated, yet critical, world of supply and demand chain enablement to gain competitive advantage. On the Web at www.SDCExec.com.

About Procuri Empower 2007

Procuri Empower 2007, the industry’s leading conference for global supply management executives and thought leaders, will be held October 8-10, 2007 at the InterContinental Hotel Buckhead in Atlanta. High profile keynotes and world-class supply management practitioners will address globalization’s effect on supply management and how companies can optimize supply costs, performance, and risks in the global economy. The conference will provide attendees with a unique educational platform to learn about new solution developments discuss common issues and build mutually profitable relationships. Speakers include executives from salesforce.com, International Association for Contract and Commercial Management (IACCM), National City Corp, Federal Signal, Toyota Financial Services and Purchasing Magazine. For more information or to attend Procuri Empower 2007, please visit www.procuri.com/empower or contact empower@procuri.com.

About Procuri Inc.

Procuri leads the On Demand Supply Management industry with more than 350 customers of all sizes, industries, geographies and spend categories. Customers include Eastman Kodak, ITT Industries, KLM Royal Dutch Airlines, The McGraw-Hill Companies, Newell Rubbermaid, Sun Microsystems and Toyota Motor Sales. Procuri’s On Demand solutions for spend analysis, supplier management, strategic sourcing, contract management and compliance are comprehensive, cost effective and instantly available. For more information, call 1-877-360-1600 or visit www.procuri.com.

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