Eastman Kodak Extends Sourcing Agreement with Procuri

Tripled yearly spend sourced electronically in 2003, expanding use of solution

Tripled yearly spend sourced electronically in 2003, expanding use of solution

Atlanta — May 5, 2004 — Eastman Kodak has extended its agreement with e-sourcing solution provider Procuri, signing a multi-year renewal that will see an expansion of the company's use of Procuri's solutions in its sourcing process.

In addition, Healthcare services company Beverly Enterprises has signed up to use Procuri's solutions for sourcing through its procurement services subsidiary.

Kodak began using Procuri's solutions in 2001. During 2003, the company tripled the amount of yearly spend sourced electronically and has experienced significant average savings, according to Procuri.

"Procuri facilitates simplicity in our sourcing processes," said Gary Frainier, e-sourcing manager for Kodak. "After our initial product evaluation and using the solutions for the last three years, we clearly understand the value strategic sourcing solutions offer to bottom-line results."

When the initial agreement was approaching expiration, Kodak re-evaluated the market as part of its due diligence. After the evaluation was complete, the company decided to continue using Procuri's solutions based on functionality, the company's historical success with the solutions and Procuri's customer support services.

With the new agreement, Kodak doubled the number of users and plans to provide worldwide training to its global purchasing organizations. Additionally, the company plans to expand its use of the solution's functionality, according to Procuri.

In other Procuri news, CERES Purchasing Solutions, the procurement services subsidiary of healthcare services company Beverly Enterprises, has signed up to use the provider's solutions in its sourcing process.

Beverly Enterprises operates 372 nursing facilities, as well as 20 assisted living centers and 23 hospice and home care centers in the United States.

Experienced with strategic sourcing solutions, CERES was looking for a solution that could better leverage its team's sourcing knowledge.

"After having used strategic sourcing technology, we clearly knew what functionality and accompanying services we wanted in a new provider," said Denver Clark, vice president of strategic sourcing and procurement for Beverly Enterprises. "After a complete market evaluation, we found Procuri's model to be the best fit. We wanted to leverage our expertise and couple that with highly functional solutions."

CERES and Beverly Enterprises originally signed a one-year agreement. After only three months of using the solutions, the company extended its agreement through 2007 based on Procuri's functionally and customer support, according to the solution provider.

"We are confident in the value Procuri's solutions add to our organization with its capability to reduce cycle times, improve decision making and streamline processes," said Clark. "It just made sense to lengthen our relationship with Procuri."

CERES and Beverly Enterprises will use Procuri's solutions across its entire purchasing organization in an effort to reduce costs for each qualifying spend category.

Procuri has had a good year so far, with the latest quarter bringing 12 new, long-term subscription agreements from a variety of industries. The provider said it has maintained a 100 percent renewal rate.