LONDON, August 27, 2010 /PRNewswire/ -- Trade Extensions has recorded growth in revenue of 25% in the twelve months up to the end of July 2010. The growth sees the company continue where it left off in 2009 and the signs are that growth is expected to continue.
Significant developments in the first half of 2010 that have contributed to the company's success include the opening of two US sales offices - in Seattle, WA and Boston, MA areas - and the launch of software version 5.5 that includes improved reporting and 'one page' optimisation.
Optimisation has been described as 'Instant ROI. Guaranteed'1 and is playing a more significant role in strategic sourcing. It is the only way to identify the optimum combination of goods and suppliers from the millions of possibilities generated during a large-scale sourcing project and allows organisations to reduce costs without compromising quality. While strategic sourcing objectives tend not to be purely financial, cost reductions of 10% are common and savings are often greater.
Business customers using the software directly and consultants using the software with their own clients continue to be the main sectors of focus for Trade Extensions. In the 12 months up to the end of July, the revenue from business users increased by 30% and consultants by 70%. A significant trend that is developing is more companies moving to multi-year licence agreements as they become more experienced in using the software and realise the benefits it delivers.
Trade Extensions, CEO, Garry Mansell said, 25% growth in the last year is a reflection of the quality of our strategic sourcing and optimisation software and the realisation among large organisations that optimisation is essential in complex sourcing projects.
Trade Extensions works in all industry sectors but has been particularly successful in the retail, transport, chemical and FMCG sectors. Regarding areas for potential growth it is clear that the public sector presents opportunities for Trade Extensions and this is an area where it has traditionally been strong after pioneering the use of combinatorial auctions in the Swedish public sector in the early 2000s.
1Source: Is 2010 The Coming of Age for Sourcing and Supply Chain Optimization? Sourcing Innovation-18 February 2010-( http://blog.sourcinginnovation.com/2010/02/18/is-2010-the-coming-of-age-...)
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Trade Extensions (http://www.tradeextensions.com) procurement software helps organisations achieve their strategic buying objectives by specifying sourcing events, collecting offers and, most significantly, optimising the results.
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SOURCE: Trade Extensions
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