IBM Offers Procurement Services On Ariba B2B Platform; Leveraged Procurement Services to Reduce Cost & Streamline Procurement

Business Wire, May 1, 2001

Business Editors

LAS VEGAS--(BUSINESS WIRE)--May 1, 2001

To address increasing demand for e-sourcing--applications and services delivered over the Internet--IBM today announced Leveraged Procurement Services (LPS), a suite of procurement services delivered on Ariba's B2B commerce technology platform.

Available in June through IBM Global Services, LPS will help businesses rein in maverick spending and save time on customized supplier enablement.

Leveraging IBM's sourcing expertise and supplier relationships, LPS will provide companies with IBM-customized catalogs and pricing for indirect goods and services, as well as Ariba's purchase requisition and reporting capabilities.

Goods and services range from basic office supplies, office furniture and equipment to industrial MRO materials and contract labor services. LPS also offers custom acquisition services--for anything from security services to capital equipment--to meet customer-specific or one-time purchasing needs.

To further automate and manage corporate sourcing, buying and internal processes, customers will access the services through either the Web-based Ariba Marketplace Network Edition (TM)or Ariba Buyer(TM)client software.

"bundling of IBM'sourcing expertise and Ariba'e-procurement systems creates real business value for a broad range of companies,"said William Schaefer, vice president of Procurement Services, IBM. "With minimal implementation or investment, LPS customers will be able to optimize and streamline a significant portion of their spend through industry-leading suppliers. LPS addresses an important need to accelerate the achievement of real returns in procurement -- a key concern in the current economic environment."

IBM saved $377 million last year through efficiencies gained from e-procurement, compared to $272 million in 1999. Today, IBM purchases 94 percent of its goods and services electronically through 24,000 suppliers worldwide.

Initial LPS suppliers include: AFFLINK, American Identity, Bruckner Supply, Carlson Wagonlit Travel, CDI Corporation, Cirqit, En Pointe Technologies, Lanier Worldwide, LCD Express, Manpower, SHI, Staples National Advantage and Teknion.

Pricing for LPS is subscription and transaction-based, with fees based on a customer's overall spend. The suite of services will be offered through IBM, Ariba and select business partners in the United States.

"This offering is a great example of how Ariba and IBM can team to deliver comprehensive procurement solutions," said Steve Turner, vice president and general manager, Procurement Solutions, Ariba. "LPS is primed to help companies achieve rapid return on investment using Ariba's procurement solutions with ready-to-go workflow and requisition tools and IBM's sourcing, catalog enablement and supplier management expertise."

The Web-enabled service, offered through the Ariba Commerce Services Network(TM), does not require the purchase of additional infrastructure. Ariba Buyer is offered through the IBM e-marketplace hosting service for Ariba Buyer, external application service providers and custom Ariba Buyer deployments.

About Ariba

Ariba, Inc. is the leading business-to-business (B2B) eCommerce solutions provider. Ariba's open, end-to-end, interoperable software solutions and hosted Web-based commerce services enable efficient online trade, integration and collaboration between B2B marketplaces, buyers, suppliers and commerce service providers. Ariba can be contacted in the U.S. at 1.650.930.6200 or at www.ariba.com.

About IBM

IBM Global Services is the world's largest information technology services provider, with 2000 revenues of more than $33 billion. Services is the fastest growing part of IBM, with nearly 150,000 professionals serving customers in 160 countries. IBM Global Services integrates IBM's broad range of capabilities -- services, hardware, software and research -- to help companies of all sizes realize the full value of information technology. For further information about IBM Global Services, please visit: www.ibm.com/services/. IBM is a registered trademark of International Business Machines Corporation.