World's second largest carrier chooses Verticalnet to improve enterprise-wide visibility for more than $9 billion in annual spend
Malvern, PA — November 16, 2005 — Delta Air Lines is expanding its relationship with spend management specialist Verticalnet in bid to further strengthen control over spending effectiveness, the solution provider reported this week.
The world's second-largest airline in terms of passengers carried, Delta has selected the Verticalnet XE Spend Manager as part of an effort to maximize enterprise-wide visibility into the company's more than $9 billion in annual spending.
To achieve its objective of enterprise-wide spend visibility, Delta needed spend analysis software that could easily scale, included deep strategic sourcing and category expertise, and provided the ability to interface with the company's existing IT infrastructure. After a successful pilot study, Delta chose to implement the Verticalnet Spend Manager to optimize sourcing opportunities and compliance management across its direct and indirect spend, covering over 200 locations and approximately 6,000 suppliers.
"We are excited that Verticalnet's capabilities will strengthen our visibility and control over spending effectiveness, reduce our overall cycle times for sourcing and continue to improve the consistency across our sourcing processes," said Bob Currey, Delta's general manager of souring innovation and supplier management.
Currey added that Verticalnet already has a three-year track record with Delta that resulted in the trimming of more than $300 million from the company's supply chain costs. "Although that track record was an important consideration in the evaluation, we looked at a number of different options in the marketplace and ultimately chose Verticalnet for its wide range of capabilities and ease of use," he said.
"By extending their relationship with Verticalnet to include Spend Manager, Delta is in a position to take advantage of the full power of Verticalnet's integrated supply management suite, delivered on-demand," said Nathanael V. Lentz, president and CEO of Verticalnet.
Verticalnet's XE Supply Management suite is available "on demand" and includes Program Manager, Spend Manager, Negotiation Manager, Contract Manager and Performance Manager.
Delta filed for Chapter 11 bankruptcy in September. The airline has racked up losses exceeding $11 billion since 2001. It reported a third-quarter loss of $1.13 billion.
Additional Articles of Interest
— Looking to outsource your supply chain? For five success factors for your outsourcing project Read "Rising to the Challenge of the Outsourced Supply Chain," cover story in the October/November 2005 issue of Supply and Demand Chain Executive.
— It has been said that the ability to learn faster than your competitors is the only truly sustainable competitive advantage. And that's just what those companies that learn to apply tax planning best practices to their supply chain structure are finding out. Read more in "The Tax Efficient Supply Chain," only on SDCExec.com.
— For insights into how the top procurement organizations align with their company's broader business to make themselves invaluable, read "Getting to World-class by Getting a Seat at the Table," the Executive Memo column the October/November 2005 issue of Supply and Demand Chain Executive.
Malvern, PA — November 16, 2005 — Delta Air Lines is expanding its relationship with spend management specialist Verticalnet in bid to further strengthen control over spending effectiveness, the solution provider reported this week.
The world's second-largest airline in terms of passengers carried, Delta has selected the Verticalnet XE Spend Manager as part of an effort to maximize enterprise-wide visibility into the company's more than $9 billion in annual spending.
To achieve its objective of enterprise-wide spend visibility, Delta needed spend analysis software that could easily scale, included deep strategic sourcing and category expertise, and provided the ability to interface with the company's existing IT infrastructure. After a successful pilot study, Delta chose to implement the Verticalnet Spend Manager to optimize sourcing opportunities and compliance management across its direct and indirect spend, covering over 200 locations and approximately 6,000 suppliers.
"We are excited that Verticalnet's capabilities will strengthen our visibility and control over spending effectiveness, reduce our overall cycle times for sourcing and continue to improve the consistency across our sourcing processes," said Bob Currey, Delta's general manager of souring innovation and supplier management.
Currey added that Verticalnet already has a three-year track record with Delta that resulted in the trimming of more than $300 million from the company's supply chain costs. "Although that track record was an important consideration in the evaluation, we looked at a number of different options in the marketplace and ultimately chose Verticalnet for its wide range of capabilities and ease of use," he said.
"By extending their relationship with Verticalnet to include Spend Manager, Delta is in a position to take advantage of the full power of Verticalnet's integrated supply management suite, delivered on-demand," said Nathanael V. Lentz, president and CEO of Verticalnet.
Verticalnet's XE Supply Management suite is available "on demand" and includes Program Manager, Spend Manager, Negotiation Manager, Contract Manager and Performance Manager.
Delta filed for Chapter 11 bankruptcy in September. The airline has racked up losses exceeding $11 billion since 2001. It reported a third-quarter loss of $1.13 billion.
Additional Articles of Interest
— Looking to outsource your supply chain? For five success factors for your outsourcing project Read "Rising to the Challenge of the Outsourced Supply Chain," cover story in the October/November 2005 issue of Supply and Demand Chain Executive.
— It has been said that the ability to learn faster than your competitors is the only truly sustainable competitive advantage. And that's just what those companies that learn to apply tax planning best practices to their supply chain structure are finding out. Read more in "The Tax Efficient Supply Chain," only on SDCExec.com.
— For insights into how the top procurement organizations align with their company's broader business to make themselves invaluable, read "Getting to World-class by Getting a Seat at the Table," the Executive Memo column the October/November 2005 issue of Supply and Demand Chain Executive.
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