LONDON, January 11, 2017 - Trade Extensions, the specialist platform for strategic sourcing with optimisation, generated record breaking revenue in 2016 recording 17% growth and gaining an additional 20 clients.
The growth means the company has increased revenue by 180% in the last five years and key to this has been the development of the North American market which saw 22% growth during 2016. The strong performance in North America means it now contributes 45% of Trade Extensions’ revenue with the remaining 55% generated in Europe, which grew by 13% during the year.
Optimisation is becoming widely used in sourcing as it enables organisations to use advanced mathematical algorithms to analyse the millions of variables generated in modern sourcing projects and help identify solutions that best meet their individual needs in terms of price, quality or any other constraints they have, such as environmental impact.
Trade Extensions has the leading sourcing optimisation technology available and gained over 20 new clients in 2016*. It was particularly successful in retail, but also gained major clients from the shipping, beverage and automotive sectors.
Consistent with its strategy to focus on technology sales, as opposed to consultancy fees, Trade Extensions now generates 84% of its revenue from software sales with 76% in the form of repeatable subscription licences.
Trade Extensions, CEO, Garry Mansell said, “The key to selling repeatable licences is enabling users to be self-sufficient and generate value for their organisations, and this is reflected in our strong profitable growth.”
Trade Extensions will further support its strategy to make users more self-sufficient when it launches TESS™ 6.0 on April 27, 2017. TESS 6.0 is Trade Extensions’ most comprehensive recent update to its platform and makes extensive use of automated user guidance and ‘TESS Apps™’ to ensure the power of TESS is accessible to all users, whether they are running complex sourcing events or simpler projects involving routine bid collection or even auctions.
TESS 6.0 represents a significant milestone for Trade Extensions and will continue to power the growth the company has experienced over the last 10 years. The signs are that the growth will continue. The order book for Q1 is already higher than for the same period in 2016. In addition, Trade Extensions is planning to establish its first permanent Asian office during 2017 and will also appoint a new regional sales manager in North America as well as new strategic sourcing consultants in Europe and the Americas.
Mansell said, “Our business performance in 2016 has given us the freedom to make the investments we need to stay ahead of our competition and continue to provide exceptional service to our clients. TESS 6.0 will be a watershed moment in the development of the business and will cement our position as the best strategic sourcing software platform for complex projects as well as more routine buying events.”
*Industry analysts ‘Spend Matters’ describe Trade Extensions customer list:
“…a client list that probably includes more of the world's top 50 firms than perhaps any other procurement software vendor except SAP or Oracle – even that might be a close run thing! Think of the world's largest consumer goods, retail and pharma firms, and you won't be far wrong.”
About Trade Extensions
Trade Extensions (www.tradeextensions.com) specialises in strategic sourcing with optimisation and over $1 billion worth of spend is allocated through its sourcing platform TESS™ each week.
Trade Extensions has offices across Europe and the U.S. Its sourcing platform is used by leading companies including Maersk, P&G, Tesco, Unilever, Cargill, Coca-Cola, Dow Chemicals, and Kimberly-Clark.
The Trade Extensions logo is a registered trademark of Trade Extensions TradeExt AB.
TESS™ and TESS Apps™ are trademarks of Trade Extensions TradeExt AB.
+44 (0)20 8004 3236