Kennametal Inks Five-Year Extension with Ariba

Tooling company sees on-demand sourcing solution as key component of spend management success

Tooling company sees on-demand sourcing solution as key component of spend management success

Sunnyvale, CA — February 2, 2005 — Tooling company Kennametal has signed a five-year extension of its subscription agreement for an e-sourcing solution from Ariba.

Latrobe, Pa.-based Kennametal, with about 14,000 employees globally and annual sales of around $2.0 billion, is a leading tooling solutions provider, providing customers with a range of advanced tools, tooling systems and engineering services.

The company is using Ariba's QuickSource solution, a Web-based application that allows Kennametal's sourcing professionals can use to run online request for quote/proposal (RFx) processes. This is part of Kennametal's broader initiative to implement spend management tools not only to reduce costs, but also to accelerate profits.

"There was no question about extending our agreement with Ariba," said Jim Cebula, C.P.M., global director of purchasing with Kennametal. "With Ariba QuickSource, we have saved a significant amount of money in a short time."

Cebula said that the solution required minimal investment, training and IT support, as it was simple to install and implement. "Because it's so easy to use, QuickSource was rapidly accepted by our sourcing team, giving us a competitive advantage right from the start," he said.

"Ariba QuickSource will enable Kennametal to leverage advanced sourcing technology as well as Ariba's in-house commodity experts who track and analyze supply markets around the world," said David McCormick, president of Ariba.

Ariba said that QuickSource is in use at more than 200 customers, running more than 2,500 projects per month.

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.

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