Pittsburgh December 17, 2001 Tier-one automotive supplier Dana Corp. renewed its agreement to use FreeMarket's e-sourcing software and services, according to an announcement today from the solution provider.
Dana has been sourcing goods and services online through FreeMarkets since September 2000, and under the terms of the agreement the Toledo, Ohio-based manufacturer will continue to source a variety of direct and indirect materials through the Pittsburgh-headquartered software provider.
"Dana has set an aggressive e-sourcing agenda, and FreeMarkets provides us with the technology, supply market information, commodity expertise and services we need to reach our strategic goals," said Bob McConahy, director supply chain management for Dana's Fluid Systems Group.
Ninety-seven-year-old Dana is one of the world's largest suppliers of components, modules and complete systems to vehicle manufacturers and their related aftermarkets. To date, the company, which had 2000 sales of $12.3 billion, has sourced over $850 million in goods and services through FreeMarkets, including aluminum, plastic injection molding, castings, chemicals and electrical connectors and wires, among other goods.
e-Sourcing remains a bright spot on the e-business landscape. The FreeMarkets announcement comes on the heels of the unveiling last week of sourcing products from Commerce One and Oracle (<http://www.isourceonline.com/article.asp?article_id=2098>). Ariba, Commerce One's rival in the e-procurement platform market, also released a sourcing solution recently.
But despite the increasing number of players in the e-sourcing market, FreeMarkets, which helped pioneer the space, has remained the number one provider of e-sourcing software and services. The company announced just this month agreement renewals with H.J. Heinz and Norsk Hydro, as well as a deal with Mitsubishi Corp. to jointly market FreeMarkets' solutions to companies throughout Japan.
FreeMarkets reported and has projected a fourth quarter operational profit of between $0.05 and $0.09 per share.