Agrees on multi-year terms with Kohl's Department Stores for use of platform
Dallas August 3, 2004 After receiving client feedback, DAVACO Sourcing Inc., a provider of online sourcing services, today announced the launch of an independent self-service product to manage sourcing programs and conduct unlimited online negotiations using DAVACO's platform. In conjunction with the launch, the provider is offering a free trial for companies to conduct an online sourcing event and view the ease of use and impact first-hand.
DAVACO also announced that Kohl's Department Stores, a family focused, value-oriented specialty department store, has agreed on multi-year terms effective immediately to use DAVACO Sourcing's new self-service platform to manage programs through online negotiations of non-retail and direct spend items.
The provider explained that its self-service product gives users access to a global network of suppliers that provide competitive bids on goods and services. Companies independently manage either a portion or their entire sourcing program for direct- and indirect-spend items using the platform.
To ensure sourcing program integrity and benefits, DAVACO said the self-service product includes best practice training and education for users, as well as auditing by DAVACO Sourcing to monitor each sourcing event.
The self-serve platform features proprietary 3-D Technology and computer-aided design (CAD) visuals to help participating suppliers actually view the item(s) being discussed for bidding.
Another feature, according to DAVACO, is the open-forum format. Suppliers, which are anonymous to competing suppliers, can submit questions to the purchasing agent, who will then respond with an answer that is posted to all participating suppliers.
Kohl's said it partnered with DAVACO Sourcing in December 2003 to pilot test the self-service platform. The service allows Kohl's to continue to optimize its expense structure, relative to non-retail products, and leverage the flexibility of the DAVACO Sourcing platform.
"Kohl's and DAVACO Sourcing have been partners since 2001," said Chris Montgomery, Kohl's vice president of procurement. "As a result, they understand that our goal is to have the best value equation, which includes product, logistics, customer service levels and price. Equally important to Kohl's, DAVACO Sourcing fosters a fair trading environment focusing on program integrity."
Gena Kay Dixon, DAVACO Sourcing vice president, emphasized the importance of working with existing customers to ensure the integrity and effectiveness of the company's new product.
"As we considered a new offering, we turned to trusted partners such as Kohl's, to develop and assess the platform," said Dixon. "Their feedback was instrumental in designing a user-friendly and seamless online program management and negotiating tool."