PeopleSoft First to Deliver Vertical Solutions for Supplier Relationship Management; New Functionality Speeds Implementation and Adoption

Business Wire, August 26, 2002

Business Editors/High-Tech Writers

Connect 2002

NEW ORLEANS--(BUSINESS WIRE)--Aug. 26, 2002

At Connect 2002, PeopleSoft, Inc. (Nasdaq:PSFT) today announced the general availability of the first industry-specific solutions for Supplier Relationship Management (SRM). Traditionally, supplier management is decentralized without a clear view of supplier relationships. PeopleSoft SRM manages the complete source-to-settle process online, across an entire organization. The new products support the unique sourcing, procurement, spend management and supplier enablement requirements of the healthcare, government, financial services, energy, consumer products, and high technology industries.

"SRM solutions must reflect vertical industry buying practices," said David Hope-Ross of Gartner. "Given that management of suppliers affects margin growth, efficiency, and product development, only industry specific approaches to SRM will enable organizations to leverage suppliers as a source of competitive advantage."

PeopleSoft SRM, built on PeopleSoft's Pure Internet Architecture(TM), manages the complete source-to-settle process, from the development of sourcing strategies to supplier selection, transaction execution, financial settlement and ongoing supplier management. SRM allows customers to manage the complete enterprise spend -- including business and manufacturing supplies, raw materials, capital assets and contract services.

"We needed a solution that would address our unique needs, from accurately managing stock at multiple nursing stations and clinics, to ensuring compliance with group purchasing contracts," said Bill Grimes, manager of materials management Information Systems at Dartmouth-Hitchcock Medical Center. "We were able to reduce inventory by an average of 50 percent, and save significantly on purchases through contract compliance and product standardization. The savings from our pilot alone have already returned our entire investment."

"Managing the supply base with a limited view of relationships leads to missed opportunities for procurement managers," said Mike Frandsen, general manager of PeopleSoft's Supply Chain Management division. "Our new vertical solutions reduce the need for customization, bringing stakeholders up and down the supply chain into a critical process faster."

PeopleSoft SRM for Industries is available today.

About PeopleSoft

PeopleSoft (Nasdaq:PSFT) is the world's leading provider of application software for the real-time enterprise. PeopleSoft pure Internet software enables organizations to reduce costs and increase productivity by directly connecting customers, suppliers, partners and employees to business processes on-line, in real time. PeopleSoft's integrated, best-in-class applications include Customer Relationship Management, Supply Chain Management, Human Capital Management, Financial Management and Application Integration. More than 4,800 organizations in 140 countries run on PeopleSoft software. For more information, visit us at www.peoplesoft.com.

Note to Editors: See the attached Fact Sheet for details on PeopleSoft SRM's industry-specific solutions.

PeopleSoft and the PeopleSoft logo are registered trademarks. All other company and product names may be trademarks of their respective owners.

Fact Sheet: PeopleSoft SRM for Industries

SRM for Healthcare

From rapid consolidation to ever-increasing pressure for cost containment, the healthcare industry needs a flexible solution to address a changing business environment. For providers of healthcare services, the PeopleSoft SRM solution addresses the multiple cost-management changes that have impacted the structure and practices of the industry, while ensuring that critical medical supplies never run short. Unique features include:

-- Collaborative supply management. Multiple users across the globe can collaborate using real-time inventory management, order histories, economic indicators and employee input to monitor and react to changes in demand.

-- Product Life Cycle Management. To accommodate short product life cycles and multiple product options, the solution manages products from design, collaboration, sourcing and pre-production to full production and product retirement.

-- Tight integration with planning systems. Faced with constant changes in production schedules and inventory levels, companies can instantly connect with the supply base to share changing information about localized product requirements, order status and inventory in real-time.

SRM for Government

SRM for Government enables agencies to gain control over the entire sourcing process and better leverage purchasing power to stretch taxpayer dollars. Government purchasing must allow direct access to complex processes and systems to ensure fair access to contracts for all in the community. The integrated PeopleSoft SRM solution provides the infrastructure for sourcing, supplier optimization, collaboration and execution of product and service contracts. Select features include:

-- Collaborative supply management. Multiple users across the globe can collaborate using real-time inventory management, order histories, economic indicators and employee input to monitor and react to changes in demand.

-- Product Life Cycle Management. To accommodate short product life cycles and multiple product options, the solution manages products from design, collaboration, sourcing and pre-production to full production and product retirement.

-- Tight integration with planning systems. Faced with constant changes in production schedules and inventory levels, companies can instantly connect with the supply base to share changing information about localized product requirements, order status and inventory in real-time.