SPX Looks to Optimize Direct Materials Replenishment

Global manufacturer eyes improved supplier visibility and synchronization with deployment of SupplyWorks solution

Global manufacturer eyes improved supplier visibility and synchronization with deployment of SupplyWorks solution

Bedford, MA — February 14, 2005 — Global manufacturer SPX Corporation has implemented a direct materials replenishment solution from SupplyWorks at two locations in its Service Solutions Segment in a move to boost supplier visibility and synchronization.

SPX, a $5 billion dollar diversified manufacturer, has implemented SupplyWorks' MAX solution at two locations in Owatonna, Minn. The SupplyWorks service, which was integrated with SPX's existing Baan enterprise resource planning (ERP) system and engineering documentation system, is being used to manage and track purchase orders, generate advanced ship notices (ASNs) and bar code labels to support automated receiving and generate electronic supplier invoices.

SPX is already using the service with 60 suppliers and is planning to add another 150 suppliers during the next few months. At the same time, SPX has given the green light to expand use of the solution to other facilities.

"We implemented SupplyWorks MAX because of its comprehensive supplier visibility capabilities, automatic shipment tracking functionality and management by exception tools," said Matthew Ballard, vice president of information technology for SPX. "By more efficiently managing our direct procurement, automating purchase orders and ASNs, and improving our 'procure-to-pay' cycle, SupplyWorks MAX is increasing visibility, flexibility and performance in our supply chain."

SupplyWorks said the solution will give SPX's suppliers better visibility into future manufacturing requirements, helping them to better plan shipments and enabling SPX to reduce the need for expedites. Backed up by a set of alerts and automatic notifications, SupplyWorks MAX can enable buyers to spend more time on higher-value-added activities and reduce the amount of manual fax, mail and phone effort required to control the stream of parts and materials flowing into each plant, the solution provider said.

"SupplyWorks MAX provides rapid automation of SPX's purchase order process and empowers its buyers to maximize supplier relationships," said Dave Wangler, president and CEO of SupplyWorks. "This enables SPX to continue to use its manufacturing capabilities as a source of competitive strength."

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