Caltex Ventures into e-Sourcing

Adds Ariba sourcing solution to current e-procurement plaform

Singapore  November 16, 2001  Petroleum company Caltex Corporation, already using an e-procurement platform from Ariba, is set to use the software provider's e-sourcing solution, according to an announcement this week from Ariba.

Caltex Corporation, based in this city-state, is a major petroleum refiner and marketer of petroleum and convenience products, with operations  and more than 8,000 suppliers  in 60 countries across Asia and Africa.

Caltex deployed Ariba's e-procurement platform, Buyer, in 1999, one of the first enterprises in the Asia Pacific region to do so. Now the company will deploy Ariba's Enterprise Sourcing as part of its initiative to improve the management of its sourcing process across all types of spend categories, including MRO, travel, services and materials procurement.

"The Ariba Enterprise Sourcing solution automates the sourcing process, enabling Caltex to reduce sourcing cycles, improve procurement decisions and negotiate significant unit cost savings," said Mike Mahon general manager, International Procurement, Caltex Corporation. "The solution will also allow us to improve the value of our purchases, expand our collaboration with suppliers or potential suppliers on structuring bids and assist us in enforcing a structured sourcing process."

Ariba says it won the bid against other leading sourcing providers through a due diligence process. The e-sourcing solution is scheduled to go live at Caltex in January 2002.

Caltex has had a busy year, e-business-wise at least. Earlier this year the company announced that it would use Chicago-based Technology Solutions Company (TSC) to host an in-house e-payments system, developed with JP Morgan Chase, as part of its overall e-procurement integration project and as a solution to currency issues in payments to local suppliers of the company's divisions.