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FOR IMMEDIATE RELEASE
Emerging Supply Markets
Low-Cost Country Sourcing and Procurement Activities
(TEMPE, Arizona) October 8, 2009 — Tapping the cost reduction potential of
emerging supply markets has become an important element of internationalization
strategies across industries.
The CAPS Research "Low-Cost Country Sourcing and Procurement Activities Benchmarking
Report" includes key metrics on supply management employees and suppliers located
in low-cost countries and other than low-cost countries. The report also focuses
on spend for direct and indirect goods in low-cost and other than low-cost countries.
Companies from the Aerospace & Defense, Automotive & Transport, Consumer Products
Manufacturing, and Industrial Manufacturing industries provided data for this report.
A few interesting metrics from the report:
- Ninety percent of the organizations in this report stated authority and responsibility
for direct goods has become more centralized, and seventy-nine percent of organizations
reported indirect goods as more centralized.
- Fifty-three percent of organizations reported direct goods are mostly managed at
the divisional level, while forty-seven percent of organizations report indirect
goods are mostly managed at the plant level.
- Forty-two percent of organizations increased the total number of FTE employees located
in low-cost countries, while fifty-eight percent of organizations reported decreasing
the total number of FTE employees in other than low-cost countries.
- Fifty-eight percent of organizations have supplier risk management specialists and
utilize third-party resources to manage supplier risks resulting from financial
distress.
- The average procurement operating expense per procurement employee located in low-cost
countries is $70,783, and $159,487 per procurement employee located in other than
low-cost countries.
To view the full metric report, "Low-Cost Country Sourcing and Procurement Activities
Benchmarking Report," visit the CAPS Research web site at:
http://www.capsresearch.org/publications/pdfs-protected/LCCS2009Metric.pdf.
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CAPS Research is a nonprofit research organization founded in 1986 to provide leading
research to our strategic-minded corporate sponsors and to the public. Our mission
is to work in partnership with a global network of executives and academics for
the discovery and dissemination of strategic supply management knowledge and best
practices. CAPS Research is jointly sponsored by the W. P. Carey School of Business
at Arizona State University, and the Institute for Supply Management™ and
Global 1000/Fortune 500-size organizations.
Media Contact:
Clare Donnalley
Marketing Manager
CAPS Research
Voice: 800/888-6276 extension 3007
cdonnalley@capsresearch.org
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