e-Sourcing Update

NCR selects A.T. Kearney Procurement Solutions; Alticor goes with Frictionless Sourcing

Tempe, AZ — March 12, 2003 — Two new wins in the e-sourcing community this week, with technology company NCR set to use solutions from A.T. Kearney and consumer packaged goods company Alticor selecting software from Frictionless Commerce.

NCR Corp., the $5.6 billion, Dayton, Ohio, manufacturer of automated teller machines and other computerized systems, has tapped A.T. Kearney Procurement Solutions to provide its eSourcing technologies and services, formerly referred to as eBreviate.

The two-year contract, finalized in late January, includes access to A.T. Kearney Procurement Solutions' RFP, Auction, Sourcing Team Tools and Supply Market Solutions technologies, as well as online training.

"After piloting A.T. Kearney Procurement Solutions tools, then working with one of their competitors for a year, we are confident we made the right decision," said Sylvia Bilban, NCR's quality director for global procurement. "We came back to A.T. Kearney Procurement Solutions after a successful pilot because their solution provides us with the best formula for long-term success — first rate functionality, e-sourcing expertise, deep intellectual capital and a relationship with A.T. Kearney, a recognized leader in strategic sourcing."

Meanwhile, Ada, Mich.-based Alticor, the $4.5 billion parent company of Amway Corp. and Access Business Group, has selected Frictionless Commerce to provide a behind-the-firewall e-sourcing solution to support its total sourcing efforts.

Currently undergoing an organization transformation process to maximize strategic sourcing opportunities, Alticor selected Frictionless Sourcing as the initiative's cornerstone technology for e-sourcing. Among the company's sourcing goals are cost of goods sold (COGS) cost savings, reduced cycle times and enhanced vendor management.

"We chose Frictionless Sourcing because it aligns with our strategic sourcing process," said Jay Ertl, vice president of product supply at Alticor. "We are not looking to reinvent how we do strategic sourcing. We have seen strong success with the existing manual process, but it takes too long. Our goal is to shorten the cycle time while standardizing other aspects of our sourcing processes. Frictionless Sourcing will allow us to meet these goals within one user friendly application."

Frictionless Sourcing will be integrated with Alticor's enterprise systems from Manugistics and J.D. Edwards. Alticor will use Frictionless Sourcing to store and access enterprise expenditure data, automate manual sourcing processes and improve vendor management capabilities.

In particular, Frictionless Sourcing will be used to consolidate expenditure data to gain visibility into spend activity across the global organization; automate manual processes, associated sourcing event management, and RFx creation and execution; measure contract compliance and track savings to contracts; and improve vendor performance monitoring and rating.

Deloitte Consulting will manage the deployment of the Frictionless solution for Alticor.