BURLINGTON, Mass., June 21,
2004 - Emptoris, Inc.
(www.emptoris.com), the leading Enterprise Supply Management solutions
provider, today announced that Owens Corning (OTC: OWENQ), a $5 billion
global manufacturer of building materials, crossed a major milestone
in the company’s strategic savings program with Emptoris’ ExpenseMap
spend analysis application. By using ExpenseMap to track and
analyze spend worldwide, Owens Corning’s procurement team
reduced expenses by $1.8 million just seven months after implementing
the solution.
“For the first time, we have true spend visibility and
accountability across the organization,” said John Hutchinson,
the E-Commerce Leader at Owens Corning. “ExpenseMap not
only provides complete visibility into how much the company spends
by commodity, supplier and line of business, but we also use
it to measure and track our savings. It has become the bedrock
for measuring the success of our savings and compliance programs,
ensuring we capture the savings we set out to achieve across
multiple procurement initiatives.”
Using ExpenseMap, Owens Corning’s
commodity managers prioritized savings initiatives focused
on the following: vendor consolidation, purchasing leverage,
contract compliance and cash flow improvement. ExpenseMap provided
commodity managers with instant access to the granular purchasing
information needed to drive these initiatives. Owens Corning
identified the following as examples of how procurement and
commodity managers used ExpenseMap to capture the $1.8 million
in savings:
- Better purchasing leverage- with ExpenseMap’s
ability to aggregate all maintenance-related spend by vendor
across multiple plant locations, one Owens Corning team negotiated
an average 11% reduction in maintenance spend across seven
plant locations.
- Enhanced contract compliance- by utilizing ExpenseMap’s
transaction drill-down capability to view individual invoice
charges, one business manager negotiated supplier rebates based
on overpayments for charges not allowed in the contract.
- Improved cash flow- by using
ExpenseMap to track spend by vendor payment terms, another
team identified vendors with non-standard payment terms
and converted these key suppliers to more favorable payment
terms.
“For global companies like Owens Corning that are leaders
in driving high impact savings and supplier management programs,
fast and easy access to accurate and reliable spending data is
crucial,” said Avner Schneur, the CEO of Emptoris. “Owens
Corning’s strategic use of ExpenseMap to identify opportunities,
prioritize initiatives and monitor compliance has accelerated
savings capture. Their success with ExpenseMap and their aggressive
plans for its further use are a testament to the ROI our solutions
deliver.”
Based upon this initial success, Owens
Corning plans to further expand the use of ExpenseMap to manage
over 95% of the company’s
entire spend, including direct materials, indirect materials
and services.
About Owens Corning
Owens Corning is a world leader in building materials systems
and composite solutions. Founded in 1938, the company had sales
of $5 billion in 2003. Additional information is available
at the Owens Corning website: www.owenscorning.com.
About Emptoris
Emptoris is a leading provider of powerful enterprise supply
management solutions for Global 5000 companies. Through Emptoris
5, a suite of Web-based supply management solutions, enterprises
are able to drive millions of dollars in bottom-line savings,
execute savings initiatives faster, and improve the productivity
of their procurement and supply management teams. Emptoris
customers include American Express, Boeing, Cigna, Fleet Financial
Corporation, GlaxoSmithKline, Keyspan, Motorola, Owens Corning
and Samsung America. Emptoris, a privately held company, is
headquartered in Burlington, Massachusetts.
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