B2B Outsourcing Solutions Seen Yielding Significant Value in Stanford Study

Gaithersburg, MD — October 17, 2007 — Companies deploying B2B outsourcing solutions experience a return that is 245 percent greater than their annual investment and a 62 percent improvement in customer satisfaction, according to the results of new research from Stanford University.

The Stanford Global Supply Chain Management Forum, led by recognized supply chain expert Dr. Hau Lee, conducted the research study, which surveyed companies outsourcing some or all their B2B operations with the goal of establishing whether customers benefit from outsourcing and, if so, how and how much.

Conclusions from the study indicate that companies that outsource B2B programs benefit not only from improved customer satisfaction but also from improved B2B technical capabilities, greater competitive differentiation, greater inventory visibility, increased system uptime and availability, as well as increased return on investment (ROI).

The full report is being made available (registration required) through the Web site of GXS, a provider of business-to-business (B2B) e-commerce solutions, which announced the study results this week and is hosting a Web seminar to discuss the results on November 8. GXS' Web site is at www.gxs.com.

Customer Satisfaction, Inventory Visibility Up

The companies participating in this survey spanned the globe and represented a variety of industries, including high-tech, manufacturing, financial services, retail/consumer packaged goods and healthcare. They ranged in size from less than $500 million in revenue to more than $10 billion.

The participants identified the following as their primary business drivers for outsourcing B2B: reducing costs; enhancing B2B capabilities; improving supply chain efficiency; centralizing vendor management and improving customer experience, among others.

Actual benefits reported included:

  • 62 percent average increase in customer satisfaction;
  • 75 percent average increase in B2B technical capabilities;
  • 58 percent average improvement in inventory visibility;
  • 55 percent average improvement in predictability of IT costs; and,
  • 41 percent improvement in B2B system uptime/availability.

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