Economic Recovery Continues in 2010: Institute for Supply Management
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Respondents in non-manufacturing industries expect that the prices they pay for materials and services will increase by 1.1 percent during 2010. They also forecast their overall labor and benefit costs will remain unchanged for 2010. Profit margins are reported to have decreased in the second and third quarters of 2009, and respondents expect them to increase between now and April 2010. Survey respondents indicate the increased use of strategic sourcing is the most frequently cited means of improving supply chains in 2010. Other improvement approaches include: product rationalization/demand management; supplier consolidation; improved inventory/asset management; and spend analysis/consolidation.
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