Arriving on Track Five, e-Procurement

Amtrak taps Ariba platform for streamlined purchasing

Tempe, AZ  July 30, 2001  Amtrak will use an e-procurement platform from software company Ariba to streamline its purchasing of goods and services, the solution provider announced today.

Using the Ariba Buyer system, authorized Amtrak employees will be able to purchase supplies from their computer desktops. Requests are electronically submitted for approval and then forwarded to the corporation's preferred suppliers.

Ariba says that using its system can result in streamlined processes, better purchasing control, economies of scale pricing and improved trading partner relationships.

"By using Ariba Buyer we will transform our purchasing process into a user-friendly, self-service procurement system and eliminate maverick purchasing at the same time," said Mike Rienzi, vice president of procurement for Amtrak. "The Ariba solution addresses one of the key initiatives in our corporate strategic business plan to increase financial and operational efficiencies."

Andersen (formerly Arthur Andersen) will integrate the Ariba solution with Amtrak's back-end enterprise systems, such as financial databases and their SAP human resources software. The first phase of implementation is expected to launch with 250 Amtrak users and ten preferred suppliers online by October 2001. Once fully deployed, the Ariba solution will be available to 4,000 Amtrak users across the country, with an estimated 1,000 online suppliers.

James Steele, executive vice president of worldwide sales for Ariba, said that, given the current economy, technology solutions that can provide measurable, rapid and significant cost savings can help companies like Amtrak to remain competitive and better serve their customers over the long term.

Amtrak operates a 22,000-mile inter-city passenger rail system, serving more than 500 communities in 45 states and has over 25,000 employees.

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