Top Performing Companies Are 1.5 Times as Likely to Be Leveraging a Statistical Method for Computing Inventory Targets

BOSTON, MA -- (Marketwire) -- 07/01/09 -- Aberdeen Group, a Harte-Hanks Company (NYSE: HHS), announced the release of its recent report, "Inventory Management: 3 Keys to Freeing Working Capital." This study in which 170 survey respondents participated confirms that inventory management processes and technologies are being actively re-evaluated today by 91% of companies. In addition 61% of respondents say they have made, or have been asked to make, inventory-related technology recommendations within the past six months.

"Optimizing inventory safety stock policies without due consideration of capacity and material constraints is not enough. Inventory management should be viewed within the context of a supply and demand balancing process that is associated with S&OP. Rough cut capacity planning within S&OP process should be augmented with inventory analysis," said Nari Viswanathan, vice president and principal analyst, Aberdeen

Over 43% of respondents set their inventory policies based on general rules of thumb. Forty-nine percent (49%) of respondents leverage spreadsheets for doing inventory optimization and 27% leverage ERP systems. Twenty-three percent (23%) leverage some form of home grown system. Only 16% leverage a best of breed SCM solution.

A complimentary copy of this report is made available due in part by the following underwriters: Demand Solutions and Supply Chain Consultants. To obtain a complimentary copy of the report, visit: http://www.aberdeen.com/link/sponsor.asp?cid=5965.

Visit Research.Aberdeen.com for additional access to complimentary SCM Research.

About Aberdeen Group, a Harte-Hanks Company

Aberdeen provides fact-based research and market intelligence that delivers demonstrable results. Having queried more than 30,000 companies in the past two years, Aberdeen is positioned to educate users to action: driving market awareness, creating demand, enabling sales, and delivering meaningful return-on-investment analysis. As the trusted advisor to the global technology markets, corporations turn to Aberdeen for insights that drive decisions.

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