Phelps Dodge Expands Deployment of Spend Management Solutions

Long-time FreeMarkets user adds Ariba e-procurement, contract management apps

Long-time FreeMarkets user adds Ariba e-procurement, contract management apps

Sunnyvale, CA — October 28, 2004 — Mining company Phelps Dodge has expanded its implementation of spend management solutions from Ariba as it continues to improve its global and regional sourcing processes.

Phoenix-based Phelps Dodge, with revenues of $4.1 billion in 2003, is the world's largest publicly traded copper producer and the largest producer of molybdenum-based chemicals and continuous-cast copper rod. The company employs more than 14,000 people worldwide.

An early adopter of technology-based supply management solutions, Phelps Dodge began using software and services from FreeMarkets in 2001 to conduct sourcing events and gain greater visibility into its spend. Ariba acquired FreeMarkets earlier this year.

Building on this foundation, Phelps will use additional Ariba spend management solutions to further beef up its global and regional sourcing processes. Specifically, the company will use Ariba's Buyer, Contract Compliance and Contract Workbench solutions as part of initiatives to generate savings and achieve strategic business objectives.

"Phelps Dodge is committed to employing solutions that enable us to gain access to the best available data for decision making, establish accountability and drive innovation and creativity across our supply chain," said Nancy Mailhot, vice president of global supply chain with Phelps Dodge." With its recent acquisition of FreeMarkets, Ariba provides us with the right combination of technology, category expertise and services to achieve these goals, and we are very pleased to be using them as part of our strategic initiatives."

"Phelps Dodge recognized the value of deploying spend management solutions early on, and has successfully used them to create and sustain value across its global operations," said Michael Schmitt, chief marketing officer with Ariba. "We look forward to helping Phelps Dodge accelerate their time to savings, expand their global reach and reap sustained benefits through these solutions."