PPG Looks for Spend Visibility

Manufacturer implementing Ariba Analysis solution in first step toward better leveraging its $5.5 billion annual spend

Manufacturer implementing Ariba Analysis solution in first step toward better leveraging its $5.5 billion annual spend

Sunnyvale, CA — November 11, 2003 — PPG Industries is set to implement a spend management solution from Ariba to provide visibility into its $5.5 billion annual spend and improve management, analysis and reporting of this spend.

Pittsburgh-based PPG Industries is a global supplier of glass, coatings, fiberglass and chemicals, with 120 manufacturing facilities and equity affiliates in 23 countries. Sales were $8.1 billion in 2002.

The company will use Ariba's Analysis solution as an integral part of the company's purchasing process to identify price anomalies and saving opportunities, to select commodities for sourcing events and to provide detailed reporting and analytical capabilities to help make smarter and better sourcing decisions.

Once implemented, the Analysis solution will house about 20 million line items from multiple back-end systems at PPG, including Oracle Financials, MFG-Pro and other legacy accounts payable systems. The Ariba Analysis tool will give visibility to this consolidated data to over 200 users across such business areas as purchasing, accounting, legal and internal audit.

"In order for the company to better leverage its purchasing dollar, increase purchasing efficiencies and reduce costs, we first need to understand our spending patterns and see where the opportunities for savings and improvement lie," said Jim Polak, director of general purchasing at PPG. "We feel that the analytical functionality and reporting capabilities of the Ariba Analysis solution, combined with the company's deep spend management knowledge and deployment expertise will enable us to meet corporate-wide transformational goals."

"When seeking spend management success, PPG made a wise decision to first gain visibility into current spending habits and to develop a common repository of spend data for analysis, tracking and reporting," said Michael Schmitt, executive vice president of marketing and strategy at Ariba.

The Ariba Solutions Delivery team will provide functional and technical best practice knowledge and experience to define key processes and requirements to help PPG achieve its business objectives, according to the solution provider.