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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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