Connectors manufacturer signs three-year agreement covering sourcing, transaction processing, settlement, commodity management
Southfield, MI — June 29, 2004 — Connectors manufacturer FCI USA has outsourced non-production purchasing activities to procurement services provider DSSI under a three-year agreement announced this week.
With American headquarters in Westland, Mich., FCI, an AREVA company, is among the world's top manufacturers of connectors and interconnect systems. Bringing in revenues of $1.6 billion in 2003, FCI currently operates in 18 countries with 12,500 employees.
DSSI will provide procurement business process outsourcing services to FCI USA, taking over the management of FCI's material and services purchasing, including strategic sourcing, transactional processing, financial settlement and overall commodity management. The three-year agreement is estimated to be worth $75 million.
FCI's procurement strategy calls for increasing process efficiency, lowering costs and increasing control of expenses by implementing a Web-based system and process across locations. FCI will utilize DSSI's Epic technology to place orders, spot buys and request for quotes, with the ability to manage status throughout the lifecycle of these transactions, according to DSSI.
"In today's competitive, global marketplace, companies that do not leverage and optimize every dollar spent are at a disadvantage," said Paul Peterson, director of purchasing for the Americas at FCI USA. "DSSI's solution allows us to optimize our indirect spend by putting into place an e-procurement technology driven by DSSI's purchasing organization to centralize our spend internally and leverage with other companies."
Scott Camera, vice president, business development for DSSI said, "With our purchasing expertise, leveraged volume and enabling technology, we can fully support FCI's business strategy to optimize their indirect spend while allowing their purchasing organization to focus on the production materials that create competitive advantage."