International Wins for Ariba, C1

e-Procurement players see new business in Japan, Germany

Tempe, AZ  December 4, 2002  Two of the major pure-players in the e-procurement solutions market this week announced customer wins outside the United States, with Commerce One seeing new business in Germany and Ariba adding a client in Japan.

Munich-based Magna Steyr Fahrzeugtechnik, a subsidiary of Magna International, one of the world's top suppliers of automotive components, has selected Commerce One technology and services to automate its procurement processes, according to an announcement from the provider.

Magna Steyr Fahrzeugtechnik, with nearly 6,400 employees, is the leading vehicle manufacturer worldwide apart from the major automakers themselves, producing more than 90,000 vehicles at its Graz plant.

Commerce One said it would help Magna Steyr redesign its procurement processes to shorten procurement cycle times. After successfully completing the pilot phase, Magna Steyr plans to expand its e-procurement solution to 2,000 users by the end of 2002.

"Magna Steyr's goal is to automate internal procurement processes and shorten processing times," said Daniel Witzani of Magna Steyr corporate communications. "Commerce One solutions free up resources and offer us the flexibility we need in today's competitive markets."

The provider's Buy solution offers Magna Steyr an interface for finding catalog content and ordering, an interface to SAP and internally developed back-end systems, and incorporation of specific ordering guidelines. Thirty supplier catalogs are currently available for ordering and that number is expected to increase to 200 catalogs in the next 36 months. In the final phase, Magna Steyr expects monthly volume to reach 30,000 orders.

Meanwhile, Tokyo-based Yamanouchi Pharmaceutical Co. has deployed the Ariba Buyer procurement solution throughout its Japanese operations, becoming the first Japanese-based pharmaceutical company to implement the Ariba solution in that country.

In a phased deployment, Yamanouchi commenced the Ariba Buyer rollout in July at its head office and Hasune branch in Tokyo, and recently extended the system to 12 domestic branches, four research laboratories, three plants and most of its subsidiaries. The company plans to make new spend commodities, such as contract and temporary labor services, available by the end of 2002.

Yamanouchi is using the solution to centralize and streamline its purchasing processes, reduce purchasing costs and cycles and benefit from economies-of-scale purchasing. Yamanouchi employees have used the solution to electronically purchase a variety of goods and services including lab equipment and supplies, business travel services and office equipment.

In October Yamanouchi reorganized its purchasing department, which had been primarily responsible for direct purchases of raw materials, and set up a new group to specialize in indirect purchases. According to a company statement, this move was designed to promote the introduction and management of the e-procurement of indirect materials while reinforcing Yamanouchi's procurement performance analysis capabilities and cost management systems.

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