Saving Money the SRM Way

Hussman Corp. finds a cool way to manage its direct material spend

SupplyWorks Inc., which provides supplier relationship management (SRM) software for discrete manufacturers, announced this week that its Web-based SRM solution, SupplyWorks MAX, has been selected by the Hussmann Corp., a manufacturer of merchandising equipment and refrigeration systems. SupplyWorks MAX will be deployed as part of the integrated offering provided to Hussmann by The 21st Supplier, a B2B service which streamlines discrete manufacturing procurement.

According to a statement issued by SupplyWorks, SupplyWorks MAX and The 21st Supplier service combine to form a SRM solution that will take over a portion of Hussmann's direct material spend. The solution will be integrated with the company's existing enterprise resource planning (ERP) system, as well as a third-party logistics provider to support supply management and delivery status.

SupplyWorks is projecting that Hussmann will realize its return in investment goals within the first year of implementing the solutions.

With regard to savings, Glenn Miller, business leader at Hussmann's manufacturing facility in Bridgeton, Mo. said, We expect to save in materials costs through outsourcing the management of certain commodities and by reducing our supply base so that we can focus our resources on other key suppliers.

Previously, Hussmann used a paper-based system to communicate with its suppliers that required employees to generate, track and expedite individual orders manually. With a new SRM system, the company will be able to refocus its efforts on higher-value-added activities associated with its core business and key suppliers.

SupplyWorks is providing us the multi-tier visibility and collaboration we need to manage relationships with Hussmann and Hussmann's suppliers, said Bill Lindquist, business leader of The 21st Supplier unit. We intend to go live this spring, less than six months from project start, which is an aggressive timetable. SupplyWorks is meeting the challenge by completing the implementation in just 120 days, including integration with Hussmann's ERP system, the third party logistics provider and an initial set of 40 suppliers.

Hussmann is an over one-billion-dollar business unit of Ingersoll-Rand Company Ltd. (IR) 21st Supplier, based in Torrington, Conn., is part of IR's Industrial Solutions Sector, and it is a B2B service provider that focuses on consolidating and managing direct material purchasing for major industrial manufacturing clients.