Burlington, Mass. – November 2, 2004 – Emptoris,
the leading provider of Enterprise Supply Management solutions for
Global 5000 companies, and AberdeenGroup, a trusted advisor to the
global business executive for value chain strategies and business advice,
polled customers at the recent Emptoris Empower 2004 user conference
on issues related to enterprise supply management. The respondents
overwhelmingly reported that enterprise supply management is strategic
to their business and is enabling them to save millions of dollars
each year while reaching a wider base of vendors worldwide.
More than 100 customers, partners and industry experts gathered in
Boston at the user conference to discuss innovations and insights on
how to more effectively manage supplier relationships across the enterprise.
Companies attending the conference including GlaxoSmithKline, Heinz,
IBM, Ahold USA, Owens Corning, Time Warner and Unilever all run enterprise
supply management programs that are a strategic element of their business.
Nearly half of the respondents, who manage procurement operations
at major multi-billion dollar enterprises worldwide, reported an average
first year savings of $33 million through the Emptoris 5 solution,
while 60 percent reported using the applications to drive savings in
both direct and indirect materials, and 40 percent used the application
to reach a more global supplier base.
“Our customers understand the value of a strategic enterprise
supply management initiative and have reaped real benefits including
cost savings and streamlined global supplier management processes,” said
Avner Schneur, founder and CEO of Emptoris, Inc. “Now senior
executives are acknowledging to the wider market, including the financial
analyst community, how enterprise supply management initiatives like
those Emptoris supports are helping them build competitive advantage
in addition to reducing costs and improving financial performance.”
“Emptoris’ customer experiences are consistent with our
benchmarking of leading sourcing organizations,” said Tim Minahan,
vice president of Supply Research and Strategy at Aberdeen Group. “Having
leveraged online negotiations to remove the “fat” from
supply markets, these forward-thinking firms are adopting more intelligent
sourcing methods and systems to improve spend visibility, engage in
collaborative and flexible supplier negotiations, utilize advanced
analytics and decision support tools, and improve monitoring and compliance
of supply costs and performance.”
Among the participants surveyed, enterprises
are adopting Emptoris 5, the company’s flagship Enterprise
Supply Management Suite, for a variety of purposes including vendor
negotiation, spend analysis, optimization bid analysis, supplier
performance management, and contract management. The major drivers
in order of significance for adopting the solution include reducing
the costs associated with supplier management, decreasing the average
price of goods and services, improving sourcing cycle times and standardizing
sourcing processes. The major benefits customers are realizing include
reduced costs, lower prices for goods and services, shorter cycle
times, enhanced visibility, more standardized processes, better qualified
and rationalized supply base, and improved knowledge sharing.
Emptoris provides its customers with a comprehensive Internet-based
supply management solution that integrates spend analysis, supplier
negotiation, optimization-based decision support, contract compliance
and supplier performance capabilities. The company has enabled its
base of enterprise customers to achieve collectively over $1 trillion
in spend analyzed, over $30 billion in spend sourced in over 50 countries,
and more than $4 billion in savings identified.
About Emptoris
Emptoris is a 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, Motorola, Owens Corning
and Samsung America. Emptoris, a privately held company, is headquartered
in Burlington, Massachusetts.
About AberdeenGroup Inc.
Founded in 1988, AberdeenGroup Inc. is the trusted advisor to the global
business executive for value chain strategies and business advice.
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