BURLINGTON, Mass., June 29 /PRNewswire/ -- Emptoris, Inc. (http://www.emptoris.com/), the leading Enterprise Supply Management solutions provider, today announced that Owens Corning (BULLETIN BOARD: OWENQ) , a $5 billion global manufacturer of building materials, crossed a major milestone in the company's strategic savings program with Emptoris' ExpenseMap spend analysis application. By using ExpenseMap to track and analyze spend worldwide, Owens Corning's procurement team reduced expenses by $1.8 million just seven months after implementing the solution.
"For the first time, we have true spend visibility and accountability across the organization," said John Hutchinson, the E-Commerce Leader at Owens Corning. "ExpenseMap not only provides complete visibility into how much the company spends by commodity, supplier and line of business, but we also use it to measure and track our savings. It has become the bedrock for measuring the success of our savings and compliance programs, ensuring we capture the savings we set out to achieve across multiple procurement initiatives."
Using ExpenseMap, Owens Corning's commodity managers prioritized savings initiatives focused on the following: vendor consolidation, purchasing leverage, contract compliance and cash flow improvement. ExpenseMap provided commodity managers with instant access to the granular purchasing information needed to drive these initiatives. Owens Corning identified the following as examples of how procurement and commodity managers used ExpenseMap to capture the $1.8 million in savings:
* Better purchasing leverage -- with ExpenseMap's ability to aggregate all maintenance-related spend by vendor across multiple plant locations, one Owens Corning team negotiated an average 11% reduction in maintenance spend across seven plant locations. * Enhanced contract compliance -- by utilizing ExpenseMap's transaction drill-down capability to view individual invoice charges, one business manager negotiated supplier rebates based on overpayments for charges not allowed in the contract. * Improved cash flow -- by using ExpenseMap to track spend by vendor payment terms, another team identified vendors with non-standard payment terms and converted these key suppliers to more favorable payment terms.
"For global companies like Owens Corning that are leaders in driving high impact savings and supplier management programs, fast and easy access to accurate and reliable spending data is crucial," said Avner Schneur, the CEO of Emptoris. "Owens Corning's strategic use of ExpenseMap to identify opportunities, prioritize initiatives and monitor compliance has accelerated savings capture. Their success with ExpenseMap and their aggressive plans for its further use are a testament to the ROI our solutions deliver."
Based upon this initial success, Owens Corning plans to further expand the use of ExpenseMap to manage over 95% of the company's entire spend, including direct materials, indirect materials and services.
About Owens Corning
Owens Corning is a world leader in building materials systems and composite solutions. Founded in 1938, the company had sales of $5 billion in 2003. Additional information is available at the Owens Corning website: http://www.owenscorning.com/.
About Emptoris
Emptoris is a leading provider of powerful enterprise supply management solutions for Global 5000 companies. Through Emptoris 5, a suite of Web-based supply management solutions, enterprises are able to drive millions of dollars in bottom-line savings, execute savings initiatives faster, and improve the productivity of their procurement and supply management teams. Emptoris customers include American Express, Boeing, Cigna, Fleet Financial Corporation, GlaxoSmithKline, Keyspan, Motorola, Owens Corning and Samsung America. Emptoris, a privately held company, is headquartered in Burlington, Massachusetts. For additional information, please visit http://www.emptoris.com/.
Contacts: Paul Green Liora Bram Emptoris, Inc. FitzGerald Communications 781/993-9212 ext. 117 617/585-2247 pgreen@emptoris.com lbram@fitzgerald.com
Emptoris, Inc.
"For the first time, we have true spend visibility and accountability across the organization," said John Hutchinson, the E-Commerce Leader at Owens Corning. "ExpenseMap not only provides complete visibility into how much the company spends by commodity, supplier and line of business, but we also use it to measure and track our savings. It has become the bedrock for measuring the success of our savings and compliance programs, ensuring we capture the savings we set out to achieve across multiple procurement initiatives."
Using ExpenseMap, Owens Corning's commodity managers prioritized savings initiatives focused on the following: vendor consolidation, purchasing leverage, contract compliance and cash flow improvement. ExpenseMap provided commodity managers with instant access to the granular purchasing information needed to drive these initiatives. Owens Corning identified the following as examples of how procurement and commodity managers used ExpenseMap to capture the $1.8 million in savings:
* Better purchasing leverage -- with ExpenseMap's ability to aggregate all maintenance-related spend by vendor across multiple plant locations, one Owens Corning team negotiated an average 11% reduction in maintenance spend across seven plant locations. * Enhanced contract compliance -- by utilizing ExpenseMap's transaction drill-down capability to view individual invoice charges, one business manager negotiated supplier rebates based on overpayments for charges not allowed in the contract. * Improved cash flow -- by using ExpenseMap to track spend by vendor payment terms, another team identified vendors with non-standard payment terms and converted these key suppliers to more favorable payment terms.
"For global companies like Owens Corning that are leaders in driving high impact savings and supplier management programs, fast and easy access to accurate and reliable spending data is crucial," said Avner Schneur, the CEO of Emptoris. "Owens Corning's strategic use of ExpenseMap to identify opportunities, prioritize initiatives and monitor compliance has accelerated savings capture. Their success with ExpenseMap and their aggressive plans for its further use are a testament to the ROI our solutions deliver."
Based upon this initial success, Owens Corning plans to further expand the use of ExpenseMap to manage over 95% of the company's entire spend, including direct materials, indirect materials and services.
About Owens Corning
Owens Corning is a world leader in building materials systems and composite solutions. Founded in 1938, the company had sales of $5 billion in 2003. Additional information is available at the Owens Corning website: http://www.owenscorning.com/.
About Emptoris
Emptoris is a leading provider of powerful enterprise supply management solutions for Global 5000 companies. Through Emptoris 5, a suite of Web-based supply management solutions, enterprises are able to drive millions of dollars in bottom-line savings, execute savings initiatives faster, and improve the productivity of their procurement and supply management teams. Emptoris customers include American Express, Boeing, Cigna, Fleet Financial Corporation, GlaxoSmithKline, Keyspan, Motorola, Owens Corning and Samsung America. Emptoris, a privately held company, is headquartered in Burlington, Massachusetts. For additional information, please visit http://www.emptoris.com/.
Contacts: Paul Green Liora Bram Emptoris, Inc. FitzGerald Communications 781/993-9212 ext. 117 617/585-2247 pgreen@emptoris.com lbram@fitzgerald.com
Emptoris, Inc.
© 2004 PR Newswire
