ROCKVILLE, Md/PRNewswire/NEWSdesk --- B2eMarkets announced a long-term commitment by Praxair to use B2eMarkets' Strategic sourcing Management (SeSM) application. Praxair will use the SeSM application to accelerate negotiations for best total cost agreements with their suppliers worldwide. Praxair recently launched its first negotiations using the SeSM application, which involved more than 10 suppliers from countries in six time zones.
"Through this negotiation, we witnessed the power of the SeSM application to help us further develop and strengthen relationships with global suppliers and significantly compress cycle time," said Randy Kramer, vice president, Global Procurement and Materials Management, at Praxair. "We were able to easily create multi-variable RFQs for complex commodities and demonstrate the flexibility to negotiate successfully with trading partners around the world, in both reverse-auction and private-offer formats, in real time."
Praxair's Global Procurement and Materials Management team has more than 100 procurement professionals worldwide who manage annual expenditures in excess of $2 billion. According to Kramer, the company will introduce the SeSM application to all of Praxair's procurement professionals worldwide by years end.
"The next wave of e-procurement will be strategic sourcing applications that provide a technology platform for enterprises to better manage their sourcing processes and knowledge," says Pierre Mitchell, senior analyst for Electronic Commerce at AMR Research. "The SeSM application helps match suppliers with sourcing requirements, create multivariable RFQs, and manage multi-round, private, and public negotiations. Improving procure-to-pay efficiency is tactical, whereas the product design and sourcing process which lock in over 80 percent of total product lifecycle costs are indeed strategic."