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EMPTORIS DELIVERS SIGNIFICANT ROI FOR ENTERPRISE CUSTOMERS

Company's Collaborative Strategic Sourcing Solution Produces Dramatic Cost and Time Savings Through End-to-End Sourcing Capabilities


Burlington, Mass., July 12, 2001 - Emptoris, Inc., a leading developer of Web-based collaborative strategic sourcing solutions, today announced that its enterprise customers have demonstrated significant revenue returns and dramatic process reductions from using Emptoris' ePASS™ software. ePASS is a Web-based collaborative strategic sourcing solution that enables enterprises to streamline the strategic sourcing process, determine the optimal supply base allocation, and forge tighter buyer/supplier networks.

In the past three months Emptoris' enterprise customers ran over 21 sourcing events using ePASS. During these events, customers sourced over a quarter billion dollars of goods and services, including 500 types of items and well over 20 million individual item pieces. The goods and services sourced through ePASS include industrial parts, business services and ingredients for consumer-packaged goods. Using ePASS, Emptoris' enterprise customers experienced cost savings in a number of areas, including:

  • 5-20% from online bidding competition through ePASS' reverse auction capabilities.
  • 5-15% by utilizing ePASS' collaboration features, such as demand aggregation.
  • 2-5% efficiency savings by moving their offline processes to the Internet.
  • 5-15% incremental savings by using ePASS' optimization-based decision support to factor complex supplier bids, such as volume discounts. Unlike competing products that offer variations of simple bid ranking systems, ePASS is the only e-sourcing application to incorporate true scientific optimization technology in its decision support engine. Only optimization-based decision support can analyze complex pricing plans to uncover additional saving opportunities not possible with spreadsheets or other ranking applications.

In addition to cost savings, Emptoris' customers discovered that ePASS greatly reduced sourcing cycles. For instance, Deloitte Consulting recently used ePASS to analyze a sourcing event in the utilities industry where a utility company needed to source transformers. The initial bid analysis process, performed manually using spreadsheets, took 40 hours over a six-week period. Using ePASS' optimization-based decision support engine, Deloitte Consulting was able to set up and run the bid analysis in less than one hour-a significant process savings on bid analysis alone, without even figuring in the additional savings that come with letting suppliers offer more complex pricing structures.

Through its flexible integration and customization features, ePASS also allows enterprises to rapidly deploy the software, resulting in a quicker return on investment. One of Emptoris' customers, a multi-billion dollar consumer products company, saved 21% using ePASS to negotiate a multi-million dollar sourcing event-all in only five weeks from initial customer contact to the point of cost savings. Another customer, a multi-million dollar global manufacturer, saw savings only six weeks after deploying and using ePASS.

"More and more large enterprises are turning to e-sourcing solutions to increase profits and streamline processes," said Avner Schneur, president and CEO of Emptoris. "As an end-to-end e-sourcing solution, ePASS offers enterprises even greater savings by optimizing the entire strategic sourcing process. The tremendous cost and process savings that Emptoris has generated for its enterprise customers, through optimization-based decision support and extensive buyer/supplier collaboration capabilities, is solid proof of the benefits of ePASS as a comprehensive strategic sourcing solution."

About ePASS
By implementing Emptoris' ePASS, multiple purchasing organizations across an enterprise can efficiently aggregate and disseminate their sourcing needs to their primary suppliers. Using ePASS' collaborative sourcing capabilities, primary suppliers can interact with other suppliers to quickly respond to the buyers' overall demand. Through ePASS' optimization-based decision support technology, buyers can quickly analyze all purchasing scenarios through scientific algorithms to come to the optimal supply base allocation. Combining advanced collaboration, sourcing event management and decision support capabilities, ePASS enables enterprises to streamline the strategic sourcing process, determine the optimal supply base allocation, and forge tighter buyer/supplier networks, allowing buyers to lower the total cost of ownership while enabling suppliers to differentiate themselves through product criteria, historical performance and flexible pricing structures. A flexible, end-to-end strategic sourcing solution, ePASS is offered either through a software license or as a hosted application, and can be easily integrated and customized through Emptoris' industry-leading professional services.

About Emptoris, Inc.
Emptoris is a leading provider of collaborative strategic sourcing solutions that support the end-to-end sourcing activities of multi-tier buyer/supplier networks. By implementing ePASS™ (Electronic Procurement Application for Strategic Sourcing), enterprises can streamline the strategic sourcing process, determine the optimal allocation of business among suppliers, and forge tighter buyer/supplier networks. Through a functionally rich sourcing and communications platform, ePASS facilitates efficient buyer/buyer, buyer/supplier, and supplier/supplier collaboration. Key benefits include lower costs, shorter sourcing cycles, and improved sourcing productivity. Emptoris, a privately held company, is headquartered in Burlington, Massachusetts.

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