Electrolux Looks Long-term

Appliance maker taps FreeMarkets to drive savings and efficiencies across global operations

Pittsburgh — December 10, 2003 — Global supply management (GSM) solutions provider FreeMarkets Inc. announced that it has signed a long-term, global agreement with AB Electrolux, the world's largest producer of powered appliances for kitchen, cleaning and outdoor use, such as refrigerators, washing machines, lawn mowers and garden tractors.

Under the terms of the agreement, Electrolux said it would use a suite of FreeMarkets solutions to drive savings and efficiencies across its global operations, including FreeMarkets FullSource, FreeMarkets QS and FreeMarkets Supplier Implementation.

The agreement follows the completion of a successful pilot, which FreeMarkets began with Electrolux Home Products in 2002.

Fabio Pigo, e-business director, Corporate Purchasing, AB Electrolux, said that cost-efficiency is a cornerstone of Electrolux's business, and the company is committed to identifying solutions that will identify savings across the organization.

"FreeMarkets provides us with software and services that allow us to better leverage our corporate commodity teams and spend to lower our costs," Pigo explained. "And based on the success we have had with these solutions during the pilot projects in our Electrolux Home Products North America sector, we are rolling them out on a global basis."

"FreeMarkets is unique in its ability to provide software to drive sourcing projects as well as commodity and sourcing expertise to support its use and ensure optimal results," said Michael Rager, vice president, Electrolux Home Products North America. "During our pilot with FreeMarkets, we sourced more than $75 million in goods and services and identified savings of more than 28 percent."