PSA Peugeot-Citroen Expands Use of Auction Activities

European automaker moves to latest version of Ariba Sourcing solution

European automaker moves to latest version of Ariba Sourcing solution

Sunnyvale, CA — February 25, 2005 — European automaker PSA Peugeot-Citroen has migrated its auction activities to the latest version of the Ariba Sourcing solution platform in order to further increase savings across the company, the solution provider announced this week.

Europe's second-largest passenger car and light vehicle manufacturer, PSA has 207,200 employees worldwide and sold more than 3.3 million vehicles in 2004.

PSA has been using e-sourcing tools for several years and has seen significant benefits from using the solutions, according to Annick Gentes-Kruch, director of PSA's B2B Division. "We are long-time believers in the benefits of automated sourcing, as our results have proven time and time again since 2002," she said.

Gentes-Kruch went on to explain PSA's decision to move to the newest version of the Ariba Sourcing solution. "After years of fruitful experience, we have now migrated to the Ariba Sourcing platform, which has the functionalities, robustness and flexibility we were targeting for the long term," she said.

Dave McCormick, president of Ariba, said: "By using the Ariba Sourcing platform, PSA Peugeot-Citroen has shown that it understands the strategic importance of optimizing its cost structure through use of spend management technology and services. The company has realized firsthand the benefits of extending its strategic sourcing initiative across the company to increase bottom line results."

Rising supply costs have hit steel, paper, plastics and other markets, and many companies are facing the Hobson's choice of paying the higher prices or going without supply. For a look at how some companies are confronting this challenge, read the article "The Blowback of Reverse Auctions," the Final Thoughts column in the October/November 2004 issue of Supply & Demand Chain Executive.

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.

More articles about PSA Peugeot-Citroen.
More articles about Ariba.