Trade Extensions power on – more firms see benefit in market-informed sourcing

We’ve seen impressive results announced recently by many of the players in eSourcing, including Iasta,   and  CombineNet. And the recent figures from market-informed sourcing specialists Trade Extensions kept up that strong trend and indeed were as impressive as any we’ve seen this year.

“The first half of 2013 was another period of rapid growth for sourcing specialist Trade Extensions with the company experiencing a 70% increase in revenue compared to the same period in 2012.  Growth was recorded in all regions, but Europe was especially strong where Trade Extensions won significant new clients for online sourcing projects”. 

 In addition to gaining new clients, the growth is attributed to increased revenue from existing customers – the results show 30% of Trade Extensions top 20 customers by revenue are new or have shown growth of more than 50% in the last twelve months.

Trade Extensions are particularly strong in four sectors - consumer products, food and beverage, retail and chemicals. So in some ways, it is an even more impressive performance as these are not exactly the boom sectors of the economy at the moment, which bodes well if the global economy is really picking up. the expansion is also reflected in an active recruitment programme with a number of fairly senior appointments recently.

We featured here the moves the firm was beginning to make into projects they call “Beyond Sourcing”. That means using their powerful optimisation engine to address issues that cut across sourcing, production planning, factory configuration, and wider supply chain management. That seems to be paying off – as their announcement says,

“This strategy is proving successful and Beyond Sourcing projects have contributed significantly to the company’s growth in the last 12 months.  This area will continue to grow and companies are recognising they can use the platform to improve decision making and solve practically any constraint driven challenge. Major companies are already using the platform for total supply chain tenders and manufacturing asset optimisation projects”.

These projects use huge data sets and massive computational power in a way that would have been inconceivable a few years ago.  I suspect it is a slight source of frustration to Gary Mansell, the firm's CEO, that he can’t say more about some of the projects, or indeed about his client list. The firm works with some huge household names, but often they’re precisely the sort of businesses that want to preserve their competitive advantage in terms of how they’re using the Trad Extensions platform!

But I guess growth at this rate probably takes the edge off any frustration...

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