ITT Industries Delves into e-Sourcing

Cites average savings of 17 percent in 20 bidding events during five-month pilot

Atlanta  May 14, 2002  Two divisions of technology products and services providers ITT Industries have signed up to use an e-sourcing solution from Procuri following a five-month pilot.

During the pilot, ITT Fluid Technology and ITT Industries Motion & Flow Control groups conducted 20 bidding events with Procuri's tools, obtaining average savings of 17 percent, largely from current or approved suppliers, according to the solution provider.

According to Lance Eruysal, the director of global supply chain and leader of the ITT team evaluating e-sourcing solutions, Procuri's platform earned high marks in flexibility, ease of use, value and breadth of technology. These advantages made it easy to achieve a rapid return on investment during the pilot program, so it's clear to us that Procuri is the best e-sourcing solution for ITT Industries, he said.

To date, ITT has conducted e-sourcing events for a wide range of spends, including castings, bar stock, metal coil, packaging, capital equipment, machined parts and other maintenance, repair and operations (MRO) items. Eruysal said Procuri's request-for-quote and -information (RFQ/RFI) tools have allowed the company to achieve significant cycle time reductions in its quoting and awarding of work to suppliers, especially on tooling and other commodity items.

Eruysal added that the tools allow ITT to make its e-sourcing decisions based on more than just price. "The Procuri system allows buyers and suppliers to weight and rate factors that are important other than unit cost," he explained. "Obviously, unit cost is only one factor in the total sourcing decision process.

In addition, Eruysal noted that his group's use of e-sourcing tools is getting high exposure and that a broader company-wide deployment will occur during the coming year.

Mark Morel, Sr., Procuri's president and CEO, said his company used coached sourcing events to show ITT's sourcing staff how best to use the e-sourcing tools. Like most large companies, ITT Industries wants to leave e-sourcing under the total control of its own sourcing professionals, Morel said.

ITT Industries Inc. supplies advanced technology products and services in a variety of markets, including electronic interconnects and switches, defense communication and fluid and water management. Headquartered in White Plains, NY, the company generated $4.7 billion in 2001 sales.