|New Study Provides Roadmap to Major Cost Savings and Value Improvement in Key Benefits Services; Typical corporation can substantially reduce overall spend without harming employee value|
WASHINGTON--(BUSINESS WIRE)--Sept. 7, 2006--The Washington, D.C.-based Benefits Roundtable announced the release of its most recent research--Realizing the Value of Vendor Relationships: Reestablishing Active Ownership of Vendor Management. The Benefits Roundtable is a membership program of the Corporate Executive Board (NASDAQ:EXBD), a leading provider of best practices research and analysis focused on corporate strategy, operations and general management issues.
Utilizing a proprietary return on investment metric that measures the value generated by vendor relationships per dollar spent, the Benefits Roundtable for the first time can quantify and measure the returns generated through different vendor management strategies. The study found that organizations implementing three key vendor selection and management strategies have the potential to realize eight times the returns of organizations that leverage other strategies. These strategies focus on:
-- How to optimally allocate vendor-management resources--By leveraging the skills of benefits staff members, internal purchasing functions, and external consultant/broker partners appropriately across different vendor selection activities, organizations can realize a greater than 50% increase in ROI. -- How to effectively navigate vendors through the start-up phase--Organizations can save about four months of staff time and more than $3 million over the course of a vendor relationship by over-investing in the initial phases of that relationship. -- How to ensure effective vendor performance measurement--Benefits executives can drive vendor returns by more than 35% through effective metric development by choosing the right metrics to track and by utilizing metrics properly to improve performance.
According to Benefits Roundtable Managing Director Michal Kisilevitz, "The general theme we saw emerge from our research over the past year is one of re-asserting ownership. By taking greater control over key vendor selection and management tasks, benefits executives can substantially increase the value their organizations generate from their major vendor relationships without hurting employee value. Just as importantly, by instituting the strategies we've identified, benefits executives can realize significant savings for their organizations."
More than 40 companies participated in the Roundtable's Realizing the Value of Vendor Relationships study, including eBay, American Airlines, Morgan Stanley, The Dow Chemical Company, General Dynamics Corporation, Merck & Co., The Coca-Cola Company, Ford Motor Company, Eastman Chemical Company, Joy Global, and Experian Information Solutions. Results of its quantitative research and best-practice case studies are available exclusively to Roundtable members. Additional information on the Roundtable's research is available at www.br.executiveboard.com.
About the Corporate Executive Board and the Benefits Roundtable
The Corporate Executive Board is the premier executive network for leaders of the world's largest public and private organizations to solve their most urgent shared concerns. The Board provides its integrated set of services currently to more than 2,800 of the world's largest and most prestigious organizations, including more than 80% of the Fortune 500. These services are provided primarily on an annual subscription basis and include best practices research studies, executive education seminars, customized research briefs, and Web-based access to a library of more than 275,000 corporate practices.
The Benefits Roundtable is one of the Corporate Executive Board's membership programs and provides ongoing research dedicated to the strategic priorities of its network of more than 200 benefits executives at leading organizations across the United States. More information on the Benefits Roundtable is available at www.br.executiveboard.com.
For current career opportunities at CEB: www.CEBCareers.com.
CONTACT: Corporate Executive Board, Washington Erica Pilarski, 202-777-9319 email@example.com www.executiveboard.com www.br.executiveboard.com SOURCE: Corporate Executive Board