No Deere John Letter

John Deere says hello to streamlined print process spend

Whippany, N.J.  March 4, 2002  Cirqit, a consulting and software company focused on the printing industry, announced that John Deere of Moline, Ill., has selected its e-procurement and supply chain management (SCM) applications. John Deere will use Order-It and Price-It, as well as related consulting services, to manage commerce within the print category under a five-year contract representing $35 million in spend on an annual basis.

According to a statement released by Cirqit, Deere is using the SCM applications to automate and streamline print purchasing and to bring the process online. The software stores supply chain pricing for various production processes, and generates contractually-binding quotes using the pricing database and the print job specifications. The automated pricing engine returns real-time quotes for every supplier that can manufacture the work, ensuring that awards go to the low-cost provider.

Additionally, Deere uses system-generated Strategic Price Management reports to evaluate the economic performance of its supply chain. Sourcing managers use the comprehensive set of reports to identify core competencies within the supply chain.

Cirqit extends best practices for supply chain management to a significant spend category and brings a complex commodity into our overall e-procurement and sourcing strategy, said Dave Nelson, vice president of worldwide supply management.

Deborah Lamphier, manager of supply management for indirect materials and services at Deere added, The Cirqit partnership is a key component of our strategic sourcing initiatives. We chose Cirqit because their domain expertise allows us to optimize our supply chain and reduce the cost of the print commodity and related administrative expenses.

Mark Hausser, president, CEO and founding partner of Cirqit, said his company is pleased to be working with Deere, since they are open to new types of SCM tools. Clients are typically unaware of the savings potential when optimizing the procurement of custom manufactured products like printing. We offer a combination of technology and consulting that puts sourcing's contractual pricing at the fingertips of the enterprise's buyers, he said.

John Deere was recently awarded Purchasing Magazine's Medal of Professional Excellence.