CombineNet's 2011 procurement services break records
CombineNet, Inc., one of the world’s leading providers of e-sourcing technology , announced numbers today that very much back up that claim.
In 2011, the company saw very strong results in revenue growth, sourcing software usage, customer expansion and retention, staff development, and industry recognitions. CombineNet reported growth of 71 percent in active customers in 2011 over 2010, which is a record-breaking figure for the company, and now supports its largest customer base ever.
Last year also was record-breaking for CombineNet in terms of revenue, the company said, though numbers were not disclosed.
“Rapid adoption in 2011 of our self-service e-sourcing product solution, CombineNet ASAP, across an even wider range of spend types, confirms the value we offer to a diverse set of companies and industries,” CombineNet’s Chief Executive Officer Rich Wilson commented. “We are poised to further accelerate our growth in 2012 as we continue to lead the industry in product innovation, which translates to an unmatched and swift return on investment.”
AN INTRODUCTION TO COMBINENET ASAP
CombineNet’s President and Chief Financial Officer, David Zynn, echoed those sentiments.
“2011 proved to be an excellent growth year for our company, following our strategic shift in late 2010 to invest in product-led solution delivery so that sourcing teams can easily and rapidly execute online sourcing events,” he said. “Despite some turbulent global economic conditions, we feel our success is due in large part to our solution’s ability to clearly identify previously untapped savings and supply chain innovation opportunities and deliver immediate ROI to our customers.”
Additional key highlights from 2011 include:
- Over 70 percent growth in hands-on users of the company’s Software-as-a-Service (SaaS)-based e-sourcing product, CombineNet ASAP, from 2010 to 2011.
- More than 250 percent growth in e-sourcing events supported in CombineNet ASAP from 2010 to 2011, including utilization in new spend areas such as media buying, corporate services, facilities development, and certain raw materials.
- Addition of customers in new vertical sectors, including Quick Service Restaurants, Pharmaceuticals and Energy.
- A customer retention rate of over 95 percent.
- Employment growth of 20 percent across product development, sales, and customer support departments, including the addition of a new chief technology officer, Steve Brooke, formerly of Procuri.
- Two major CombineNet ASAP product release updates, which delivered a new Expressive Feedback feature and sourcing event Dashboards to users, among other enhancements.
SEE OTHER TOP PROCUREMENT STORIES IN THE SUPPLY CHAIN DIGITAL CONTENT NETWORK
- The formation of a formal Customer Advisory Board, anchored by Global 1000 companies.
- Receipt of numerous industry and professional awards, including: Food Logistics 100; Supply & Demand Chain Executive Pros to Know for three staff members; Supply & Demand Chain Executive 100; Inbound Logistics’ Top 100 Logistics IT Company; SupplyChainGreat 100 Great Supply Chain Partners; and the American Marketing Association Pittsburgh chapter’s Technology Marketer of the Year.
Procurement will continue to be a huge focus in 2012 as supply chain managers are asked to find ways to save money in the logistics process as a whole. In that sense, this year could be a banner year for CombineNet, and other cloud-based procurement and purchasing service providers.
EU and US agree end to Airbus-Boeing supply chain tariffs
The EU and US have agreed to resolve a 17-year dispute over aircraft subsidies, suspending tariffs on billions of dollars' worth of goods that have plagued procurement leaders on both sides of the Atlantic.
Under an agreement reached by European Commission Executive Vice-President Valdis Dombrovskis and US Trade Representative Katherine Tai on Tuesday, the tariffs will be halted for a period of at least five years.
It will bring an end to punitive and disruptive levies on supply chains that have little to do with the argument, which became embroiled in the trade battle. Businesses on both sides of the dispute have been hit with more than $3.3bn in duties since they were first imposed by the US in October 2019, according the EC.
The US imposed charges on goods upto $7.5bn in response to a World Trade Organisation ruling that judged the EU’s support of Airbus, its biggest aircraft manufacturer, unlawful. A year later in November 2020, the EU hit back. The WTO found the US had violated trade rules in its favourable treatment of Boeing, and was hit with EU duties worth $4bn.
In all the tariffs affected $11.5bn worth of goods, including French cheese, Scotch whisky, aircraft and machinery in Europe, and sugarcane products, handbags and tobacco in America. Procurement leaders on both sides of the fence were forced to wrestle with tariffs of 15% on aircraft and components, and 25% on non-aircraft related products.
Boeing-Airbus dispute by the numbers
- The dispute began in 2004
- Tariffs suspended for 5 years
- $11.5bn worth of goods affected by tariffs
- $3.3bn in duties paid by businesses to date
- 15% levy on aircraft and 25% on non-aircraft goods suspended
Both sides welcome end to tariffs
European Commission President Ursula von der Leyen branded the truce a “major step” in ending what is the longest running dispute in WTO history. It began in 2004.
“I am happy to see that after intensive work between the European Commission and the US administration, our transatlantic partnership is on its way to reaching cruising speed. This shows the new spirit of cooperation between the EU and the US and that we can solve the other issues to our mutual benefit,” she added.
Both aircraft manufacturers have welcomed the news. Airbus said in a statement that it will hopefully bring to an end the “lose-lose tariffs” that are affecting industries already facing “many challenges”. Boeing added that it will “fully support the U.S. Government’s efforts to ensure that the principles in this understanding are respected”.
The US aerospace firm added: "The understanding reached today commits the EU to addressing launch aid, and leaves in place the necessary rules to ensure that the EU and United States live up to that commitment, without requiring further WTO action."
This week’s decision expands upon a short-term tariff truce announced in March this year. The EC says it will work closely with the US to try and further resolve the dispute, establishing a Working Group on Large Civil Aircraft led by each side’s trade minister.
Airbus last month signalled to suppliers that post-pandemic recovery was on the horizon, telling them to scale up to meet a return to pre-COVID manufacturing levels. “The aviation sector is beginning to recover from the COVID-19 crisis,” said Airbus chief executive Guillaume Faury, adding that suppliers should prepare for a period of intensive production “when market conditions call for it.”