Mining for More e-Sourcing Savings

Phelps Dodge expands use of FreeMarkets solutions; adds ES, Spend Visibility to portfolio

Pittsburgh — May 20, 2003 — Mining company Phelps Dodge is expanding its use of solutions from e-sourcing specialist FreeMarkets as it works to lower its total costs, reduce supply risk and maximize opportunities for savings across its operations.

Phoenix-based, $3.7 billion Phelps Dodge Corp. is the world's second-largest producer of copper and the largest producer of molybdenum-based chemicals and continuous cast copper rod. The company's two divisions, Phelps Dodge Mining and Phelps Dodge Industries, employ approximately 13,500 people in 27 countries.

Phelps Dodge initially signed with FreeMarkets in late 2001, with the mining company using e-sourcing software and services to source a range of goods and services for its operations worldwide. FreeMarkets provides the technology for Phelps Dodge's online bidding platform.

Under the terms of a newly signed agreement, Phelps Dodge will use FreeMarkets's ES and Spend Visibility solutions, in addition to the FullSource and QS solutions already in use.

FreeMarkets said that ES provides companies with the technology infrastructure necessary to manage information, requirements, negotiations, suppliers and transactions involved in sourcing.

Spend Visibility combines analysis software with data collection, cleansing and enhancement services to offer companies visibility into their global spend, which they then can leverage to design, execute and measure the effectiveness of spend management strategies as part of global supply management programs.

"Phelps Dodge is committed to employing solutions that enable us to gain access to the best available data for decision making, establish accountability and drive innovation and creativity across our supply chain," said Nancy Mailhot, vice president of global supply chain for Phelps Dodge. "Phelps Dodge is looking to FreeMarkets to provide us with the right combination of technology, information and services to achieve these goals, and we are very pleased to be using them as part of our strategic initiatives."

Read more about Nancy Mailhot's work on the Phelps Dodge supply chain in "2003 Pros to Know," the cover story in the February/March 2003 issue of iSource Business.