ATLANTA -- December 6, 2000 -- Procuri.com signed a five-year, $2.25million contract with the United States Navy's business managers, the Naval Supply Systems Command (NAVSUP).
Under the terms of the deal, NAVSUP personnel will use Procuri.com's Internet-based e-procurement tools and services to manage and conduct forward and reverse auctions from their desktops. NAVSUP purchases more than $4 billion worth of equipment, supplies and services each year and expects to generate savings of 10 percent to 20 percent using the procurement tools.
"Sourcing provides the single largest opportunity for an organization to reduce costs, control quality, and impact the structure of its supply chain," said Tim Minahan, research director, e-Business with Aberdeen Group. "However, sourcing is a complex process, particularly in public sectors, where federal procurement regulations must be met. A deal of this magnitude both validates Procuri.com's ability to automate and streamline complex sourcing processes and speaks to the strength of Procuri.com's Internet-based service delivery model."
Procuri.com is a sophisticated, yet simple-to-use Internet-based tool that lets buyers work with the suppliers they choose. By automating the request for information (RFI) and request for quotation (RFQ) processes and bringing the negotiations into a reverse auction, buyers can close transactions more quickly and efficiently. All a buyer or supplier needs to participate is a PC, a browser and an Internet connection.
"Governmental agencies, like any organization, are embracing e-procurement tools and services, because of the clear efficiencies gained by their use," said Mark F. Morel Sr., Procuri.com's president and chief executive officer. Morel expects to announce more big deals from the Atlanta-based company in the coming weeks.
NAVSUP is the U.S. Navy's principle supplier of goods and services. The Mechanicsburg, Pa.-based division employs a global work force of more than 9,000 military and civilian personnel, overseeing logistics programs in the areas of supply operations, conventional ordnance, contracting, resale, fuel, transportation, and security assistance. NAVSUP also is responsible for food service, postal services, Navy Exchanges, and the movement of household goods.
