Market Demand for Online Procurement Fuels Growth for HedgeHog

Solution provider points to rising use of "on-demand" sourcing tools by mid-market companies

Solution provider points to rising use of "on-demand" sourcing tools by mid-market companies

Indianapolis February 15, 2005  Online procurement services provider HedgeHog is highlighting its results for 2004, saying that growing acceptance of e-sourcing as a way to cut purchasing costs and streamline procurement has boosted the company's growth.

According to the Institute for Supply Management and Forrester Research, 85 percent of companies recently surveyed said they have made progress toward adopting the Internet for purchasing. Additionally, 46 percent said they use company-wide procurement tools.

HedgeHog said that its customers have used the provider's e-sourcing tools to save from 8 to 32 percent on the goods, materials and services they purchase from global suppliers. Companies also can use the solution to automate and reduce the purchasing cycle time by up to 80 percent, the provider said.

In addition, HedgeHog said that online procurement is gaining momentum among mid-market organizations as solutions providers like HedgeHog offer them "on-demand" sourcing software that provides cost savings with minimal investment. The use of these services rose by 24 percent in the past year, according to one recent benchmarking study. By comparison, the use of non-hosted solutions that require integration into a company's IT infrastructure rose by 2 percent, the study showed.

HedgeHog said its mid-market clients are benefiting from the provider's online procurement model operate in a wide range of industries, including manufacturing, energy, government, construction, transportation, food service, travel, pharmaceuticals, agriculture, education, electronics, converting, healthcare, engineering, logistics, retail and technology.

"HedgeHog's unique combination of affordable, Web-based solutions and expert customer support has positioned the company to emerge as a leader in helping organizations enhance their strategic sourcing initiatives," the provider said in a statement.

"In today's competitive marketplace, every company's survival depends on tightly managing resources and operating efficiently," said Jemin Patel, HedgeHog CEO and president. ."HedgeHog provides a viable answer to this challenge."

Patel said that his company's procurement specialists can provide full-service solutions to guide organizations through the entire purchasing process, developing purchasing specifications, managing documents, identifying qualified suppliers locally and throughout the world, facilitating online negotiations and analyzing results. Alternatively, customers can choose to manage the entire process themselves through HedgeHog's self-service software.

HedgeHog said its Web-based, "on-demand" procurement software does not require lengthy setup or integration within existing technology or supply chain management systems. "This on-demand model is much more affordable than other alternatives and allows midsize businesses to benefit from the same online procurement technology that was previously only available to large corporations," said Patel.

Founded in 2001 by Patel, HedgeHog has expanded its service set from discrete online auction tools to a range of on-demand sourcing solutions. In 2004, HedgeHog added a new facet to its service line by introducing global sourcing, a professional services practice intended to help clients connect with suppliers throughout the United States, India, Brazil, China, Europe and Canada.

The solution provider said its primary focus in the next 24 months will be to continue serving the mid-market. Along with its global sourcing initiatives, the company will also focus on developing custom procurement applications to meet specific industry requirements. In addition, HedgeHog plans to unveil new e-sourcing solutions for the pharmaceutical, state government and travel markets.

For more information on the current state of the sourcing and procurement markets, see the articles "The Analyst Corner: Sourcing" in the June/July 2004 issue of Supply & Demand Chain Executive, and "The Analyst Corner: Procurement" in the August/September 2004 issue of the magazine.

  • For more information regarding "on demand" computing models, see the article "Cutting Through the 'On Demand' Hype," the Net Best Thing column in the December/January 2004 issue of Supply & Demand Chain Executive.
For more information on solutions for mid-market enterprises, see "Stuck in the Middle" in the April/May 2004 issue of Supply & Demand Chain Executive.