The ABC analysis led LG Electronics to change many of its procurement practices and processes, improve efficiency, and focus on the highest-value tasks such as managing costs of commodity products and negotiating with suppliers. In 2012, LG Electronics saved $4.7 billion in direct material costs. Furthermore, the company developed an innovative global procurement strategy for its televisions, mobile phones, computers, and home-theater systems by implementing competitive bidding among suppliers, standardizing part across product lines, and developing the capability to purchase more goods in China. As a result, today 44% of LG Electronics’ global purchasing is sourced from outside from outside of South Korea.