Procter & Gamble Targets Supplier Relationship Management

P&G inks deal with UGS for integrated strategic sourcing, SRM solution

P&G inks deal with UGS for integrated strategic sourcing, SRM solution

New York — June 28, 2005 — Procter & Gamble has signed up to use strategic sourcing software and services from UGS in conjunction with a planned worldwide deployment of a Web-based supplier relationship management (SRM) solution.

After evaluating several solutions, P&G selected UGS' Teamcenter solution to enable an SRM suite to integrate under the P&G corporate supplier portal. By using Teamcenter's sourcing community, P&G will be able to manage all aspects of the supplier relationship in its single-window system, according to UGS.

"P&G is creating a world-class sourcing environment that provides stakeholders in its procurement supply network with single-window access to the company's sourcing applications and product data," said Dave Schmid, associate director of purchases at P&G. "Strategic sourcing is a competitive advantage for P&G, and this new system will help us accelerate the process from procurement to commercialization of innovations."

Reducing Complexity

In awarding the business to UGS, the primary factor P&G cited for its decision was the potential for reduced complexity by using Teamcenter to integrate its existing architecture of multi-vendor sourcing solutions and linking SRM with product development and the sourcing process.

The company also cited Teamcenter's collaboration capabilities, ease of use, ability to rapidly deploy the Teamcenter-based system and its scalability in implementations exceeding 20,000 users, as well as confidence in UGS' software and support.

"P&G procurement professionals will be able to make faster and more efficient sourcing decisions by quickly finding and reusing data created in other systems," Schmid said. "Also, by automating routine tasks and providing 'self-service' support for our suppliers we will be able to better focus on strategic sourcing decisions."

Jim Milton, executive vice president of global sales and services for UGS, said that the P&G deal would enable UGS to offer next-generation SRM capability coupled with product lifecycle management.

"The close collaboration between P&G and UGS has resulted in a set of capabilities that will streamline the sourcing process, optimize sourcing activities and, more importantly, provide analytics and tools for efficient decision making for the company," Milton said.

Additional Articles of Interest

— For more information on the current state of the sourcing market, see the article "The Analyst Corner: Sourcing" in the June/July 2004 issue of Supply & Demand Chain Executive.

— Looking for a guide to content management systems to support product lifecycle information? Read the article "Managing Content Throughout the Product Lifecycle" for additional insights.

— For more information on mid-market companies using product lifecycle management solutions to gain competitive advantage, see "Stuck in the Middle" in the April/May 2004 issue of Supply & Demand Chain Executive.