How the Business Internet Can Save Your Company Millions

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1 How the Business Internet Can Save Your Company Millions There s treasure buried in your bottom line. Here are ten proven ways to uncover it.

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4 2. Gain Unprecedented Visibility and Control Nothing pulls the slack out of your supply chain like increased visibility and control Does your supply chain have a mind of its own? The more you track online, the less you leave to chance. Sophisticated reporting tools now follow every decision made and every dollar spent throughout the source-to-pay process. Since we can show them how their volume has increased, many of our contract suppliers are willing to further reduce prices. Tom Restaino, Manager for ebusiness Operations within ITT s TDS Corporate Services division When you have the power to manage enterprise-wide behavior, you can reduce the total cost of ownership of purchased goods and services. You ll monitor not only prices and contracts, but also fulfillment and deliveries. You can weigh the added cost of warehousing excess supplies against the savings earned from buying in bulk. Ultimately, you ll be empowered to make better decisions while ensuring ongoing savings, enabling your company to respond at a moment s notice to changing market conditions.

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6 4. Find the Right Suppliers Online Sourcing: The shortest line between you and your suppliers Become a magnet for the best suppliers. Search established trading communities to find pre-screened suppliers in many categories and regions around the world. Then evaluate those suppliers according to your own specific criteria. Instead of simply running auctions and enforcing competitive bidding, adopt a strategic sourcing vision. The latest analytical software tools enable the review of a dozen candidates on more than 30 different characteristics in as little as an hour. You can prioritize reliable delivery over price, or quality over quantity. Whether you need to identify suppliers for an emergency spot buy or for a long-term partnership, the Business Internet improves the process and the results. We were pleasantly surprised and excited when our suppliers deemed the system a more transparent way of doing business. Our suppliers are very confident with the new technology and feel it gives them all equal chances to win our business. George Mertikas, Head of Call for Bids Division for Purchasing at the Hellenic Telecommunications Organization

7 5. Optimize Supplier Relationships You and your suppliers can work less to accomplish more Are your suppliers watching your back? If you shift the focus from price to strategic value, they will. Market research firm IDC says the Fortune 500 will lose $57 billion in the next two years because of communication and collaboration failures*. Don t let your business contribute to that loss. Use the Business Internet to consolidate purchasing into a few key suppliers. You ll get better volume discounts and reduced transaction processing costs. Establish longterm contracts for purchasing critical materials and services, communicate in real time, and work more closely with your partners. Get suppliers involved early in new product designs to ease the manufacturing process. Know them so well, they can finish the sentences their buyers start. In the end, they will offer better deals and produce greater results for your business. It s not enough to optimize the money you spend. You can also maximize the relationships you already have. With an increasing level of product value coming from suppliers, few companies can afford to overlook Supplier Relationship Management as a key to profit enhancement and cost reduction. Barbara Reilly, Gartner Group * source: Commerce One

8 6. Collaborate Within and Beyond the Enterprise Leave the lines of communication open for business An automated source-to-pay solution facilitates a seamless, real-time information exchange among internal departments and across the entire web of trading partners. You can design unique, efficient process flows tailored to specific industries and regions to bring collaboration to the next level. Or extend existing IT applications to customers, suppliers, and trading partners to increase the ROI for those systems. Flexible workflow tools incorporate business rules to address each component of the business process: people, procedures, information, tasks, and management. A workflow engine can handle more than requisitions. Use it to route electronic forms for everything from new employee hires to 401(k) contributions. The success of one project lends momentum to the next. And the enhanced collaboration can drive improved financial performance. Commerce One was the only fully adequate and adaptable solution to meet all of our unique demands. It is Web-enabled, integrated with our financial and SAP ERP systems, offers multi-currency support, and is backed by an expert technical team. Alain-Michel Diamant-Berger, Director of E-Commerce Strategy for Schlumberger Oilfield Services

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10 8. Enhance Employee Satisfaction Increase your employees power to spend and you ll increase the money you save Many professionals share responsibility for the corporate buying process. Business unit managers, employees, and IT staff all play key roles. It s easier to give them all more power when you know exactly what they re doing with it. With e-sourcing and e-procurement technology, you can enable anyone to selfpurchase without compromising business rules or competitive prices. We began seeing some successful returns as soon as we began transacting. In every case, when a user starts to use the system, he or she never goes back to the old way fax or telephone or what have you. I think that really proves the point. Eric Sebellin, E-Procurement Project Manager at Air Liquide Giving employees the ability to check approval and order status online eliminates time-consuming paper pushing and maverick spending. They will buy from the right suppliers because the new process is easier than breaking the rules. Allow your procurement professionals the freedom to engage in strategic activities instead of mundane tasks, and they may outperform the market.

11 Choose the 9. Right Solution ROI ROI ROI Think ROI first, and fast It takes only ten steps to discover improvements that can strengthen your bottom line for good. Put the Business Internet to work for your organization and the returns will climb well above 100 percent*. The key success factor is choosing a solution that provides a rapid return on investment, meaning quick implementation with tangible, guaranteed results in just a few months. Other factors to consider in determining what will best meet your company s needs: Does it provide visibility and control across your entire source-to-pay process? Does it enable your company to quickly integrate and manage the systems, processes, and individuals inside and outside your enterprise? Does it provide instant access to trading partner services and your supplier network? Does it create a seamless workflow across systems within the enterprise and with external suppliers? Does the solution allow for componentization and provide multiple deployment options? At Commerce One, we designed our suite of collaborative source-to-pay solutions to specifically address the needs of enterprises large and small. We ll deliver a quick and substantial return on your investment, usually within 90 days. * source: AMR Research

12 10. Contact Commerce One Today Use the Business Internet to uncover hidden savings Commerce One is the Business Internet Company. Our software suite, Commerce One 5.0, gives buying organizations unprecedented visibility and control over interenterprise sourcing and procurement processes. Commerce One 5.0 reduces cycle times, lowers transaction costs, and achieves better pricing for all types of goods and services. That s why the world s leading companies rely on Commerce One technology to enable lasting improvements in profitability. Since 1996, Commerce One has helped Boeing, Deutsche Telekom, General Motors, DaimlerChrysler, and others drive costs out of their sourcing and procurement processes. Commerce One solutions have generated millions in savings for more than 550 customers worldwide by supporting complex purchasing requirements for industries such as consumer and industrial products, healthcare, financial services, aerospace and defense, and energy. Contact Commerce One today to learn more about how we can help find the treasure buried in your bottom line. Using our proprietary Commerce One ROI Calculator, a Commerce One representative can create a customized analysis of your company s annual spending. With this in-depth customized evaluation, you can see how through the automation of your sourcing and procurement processes your organization can achieve significant improvements to your overall spend and, ultimately, your bottom line. With the Commerce One ROI Calculator, find out how you can: Secure better terms for current strategically sourced goods Reduce cycle times by automating the sourcing process Increase compliance and reduce maverick spend through greater visibility and tighter control over the purchasing process Reduce spend through supplier and contract consolidation Reduce transaction processing costs Reduce costs of goods and services through streamlining the reconciliation and workflow approval process for invoices and POs Call (in the U.S.) or (from outside the U.S.) Or visit

13 Commerce One (Nasdaq: CMRC) is the Business Internet Company. Through its software, services, and global network of interconnected enterprises and e-marketplaces, Commerce One enables organizations to reduce costs and drive productivity by automating business processes between buyers and suppliers. for more information. > Commerce One World Headquarters CarrAmerica Corporate Center, Bldg Rosewood Drive Pleasanton, CA (USA) toll-free tel fax > Europe, Middle East, India, and Africa Commerce One (UK) Ltd. Minton Place Victoria Street Windsor, Berkshire, SL4 1EG (UK) tel fax > Asia Pacific Headquarters Commerce One Solutions Pte Ltd. #18-01/04 Commerce Point No. 3 Phillip Street Singapore tel fax , Commerce One, Inc. All rights reserved. Commerce One and xcbl are registered trademarks of Commerce One Operations, Inc. Powering the Business Internet, XML Common Business Library, Global Trading Web, CommerceOne.net, Commerce One Source, Commerce One Buy, Commerce One Collaborative Platform, Community Manager, Process Manager, Web Services Framework, Transaction Manager, and Business Intelligence Framework are trademarks or service marks of Commerce One Operations, Inc. All other company, product, and brand names are trademarks of their respective owners.

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