e-Sourcing Roundup

Lilly taps MaterialNet, Best Buy sticks with FreeMarkets, Unocal selects PurchasePro

Tempe, AZ  March 5, 2002  While pundits and industry watchers continue to debate e-sourcing's future (for more on this debate, see the recent articles "GE GXS Enters the Sourcing Arena" http://www.isourceonline.com/article.asp?article_id=2316 and "So Many e-Sourcing Solutions, So Little Time" http://www.isourceonline.com/article.asp?article_id=2098), large enterprises are moving forward with their own initiatives employing a variety of solutions.

Here's a roundup of the latest e-sourcing projects to be announced:

·        Lilly taps MaterialNet

Eli Lilly and Co. is set to use an e-sourcing solution to streamline its strategic sourcing process.

Lilly has signed up to use Custom Procurement Management System (CPMS) from solution provider MaterialNet in its sourcing process, according to an announcement today from the solution provider.

CPMS is a Web-based solution for e-sourcing. The software includes tools for creating electronic requests for information; setting up online auctions; managing contract and spot purchases, as well as blanket orders; running bid analyses; and managing the documentation associated with the sourcing process.

·        Best Buy sticks with FreeMarkets

Big-box retailer Best Buy Co. has signed a long-term agreement with FreeMarkets to source a variety of goods and services for its operations. The agreement follows the completion of a successful pilot, which FreeMarkets and Best Buy began in June 2001.

Best Buy will use the provider's FullSource solution, which combines e-sourcing services in numerous spend categories with industry-specific program management, information and knowledge about specific commodities and supply market dynamics and the e-sourcing software.

To date, Best Buy reports that it has identified potential savings of about 16 percent through the online markets it has created for a range of goods and services. The items that Best Buy has sourced through FreeMarkets include merchandising, engineering and construction, packaging and IT equipment.

·        Unocal selects PurchasePro

Unocal, one of the world's top natural gas and crude oil companies, has adopted an e-sourcing solution from PurchasePro as its global reverse auction platform.

Since initial implementation of the PurchasePro e-Source solution in July 2001, Unocal has used e-Source for reverse auctions in North America, Thailand, Singapore, Indonesia and the Philippines. To date, Unocal has conducted reverse auctions on commodities including marine gas oil and high-speed diesel oil; technology products such as video conferencing systems and computer equipment; and engineered equipment such as injection pump systems.

PurchasePro says that in addition to providing reverse auction functionality, e-Source enables buyers to quantify spend analysis, qualify additional suppliers, enhance the management of requests for information and quotes, cultivate competitive bidding and negotiations and manage supplier relationships more effectively than before.