We Energies Tackles Supplier Relationship Management

Utility selects Frictionless SRM software to increase spend visibility, automate and standardize its sourcing methodology

Utility selects Frictionless SRM software to increase spend visibility, automate and standardize its sourcing methodology

Cambridge, MA — July 13, 2005 — Midwestern utilities company We Energies has selected a supplier relationship management (SRM) solution from Frictionless Commerce to automate, track and execute its sourcing methodology and increase its spend visibility.

We Energies, the trade name of Wisconsin Electric Power Co. and Wisconsin Gas, serves more than 1.1 million electric customers in Wisconsin and Michigan's Upper Peninsula and more than one million natural gas customers in Wisconsin. As part of a sourcing transformation, the utility's supply chain team developed a seven-step sourcing process and required a software solution to embed this methodology.

"Frictionless SRM software enables us to model our sourcing process and apply it more consistently across our business," said James Baillon, vice president of administrative services and supply chain at We Energies. "This process discipline is a key part of our strategy to work effectively with the most appropriate suppliers to bring value to our company and our customers."

Frictionless said its SRM solution was selected due to its broad functionality and ability to help increase visibility into expenditures. Through the use of Frictionless SRM's Enterprise Sourcing and Vendor Management modules, We Energies is looking to track the entire portfolio of savings opportunities through project management; increase efficiencies through the automation and standardization of its sourcing methodology; and source the full spectrum of spend categories, including maintenance, repair and operations (MRO) and services.

Mary Cotton, president and CEO of Frictionless Commerce, noted that We joins the solution provider's existing clients in the utilities sector, including Florida Power & Light and PSEG. Outside of utilities, Frictionless' other customers include Wachovia, Bristol-Myers Squibb and MetLife.

Additional Articles of Interest

— For more information on the current state of the sourcing and procurement markets, see the articles "The Analyst Corner: Sourcing" in the June/July 2004 issue of Supply & Demand Chain Executive, and "The Analyst Corner: Procurement" in the August/September 2004 issue of the magazine.

— By deploying an automated point-of-use dispensing solution at its New Bedford plant, this medical devices company is driving down the cost of MRO. Read "Uncribbing the Tools at DePuy Orthopaedics" in the June/July 2005 issue of Supply & Demand Chain Executive.

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