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REDWOOD SHORES, Calif.
07-SEP-2000 06:00 AM
Oracle Corp., the largest provider of software for e-business, today announced that AMETEK, a $1 billion global manufacturer of electronic instruments and electric motors, is implementing Oracle Internet Procurement, with savings of 10 percent or more expected on its maintenance, repair and operating (MRO) spending. When the Oracle procurement solution, a key component of the integrated Oracle e-Business Suite, is fully implemented, AMETEK employees in over 40 locations worldwide will use the system to purchase direct and indirect items, gaining process efficiencies and leveraging corporate-wide buying power to obtain better prices from suppliers.
"We conservatively expect our Oracle Internet Procurement initiative to reduce our MRO spend by 10 percent, resulting in millions of dollars in savings and a substantial positive impact on earnings," said William Lawson, vice president and chief information officer for AMETEK.
Oracle Internet Procurement will replace a manually intensive, decentralized requisition and payment process that did not give the company visibility into its aggregate spending with suppliers. The Oracle solution will enable AMETEK to leverage its corporate-wide buying power, thereby helping negotiate better contracts with suppliers and substantially reducing spending.
AMETEK's Oracle solution, including Oracle Internet Procurement and Oracle Purchasing Intelligence, will initially be deployed in North America to manage indirect spending on items such as factory and office supplies. The solution will subsequently be rolled out globally and used for all direct and indirect purchasing. In addition to Oracle’s leadership in e-business and ability to provide global support, the Oracle procurement solution was selected based on its ability to support international operations.
AMETEK's decision builds on a long-standing relationship with Oracle. The 8,000 employee company first selected Oracle in 1996 and uses Oracle Manufacturing and Supply Chain, Financials, database technology and tools to improve its operational efficiencies and better manage its worldwide business.
As a key part of the procurement initiative, AMETEK is also centralizing its accounts payable functions across multiple divisions to gain economies of scale. Oracle Internet Procurement will be fully integrated with Oracle Financials--reducing manual data entry and resulting in greater efficiency. On the back end, Oracle Purchasing Intelligence will allow the company to continuously improve its processes and reduce costs by analyzing purchasing habits such as catalog versus non-catalog spending. "Leveraging Oracle e-Business technologies company-wide helps AMETEK sustain its double-digit annual percentage growth in earnings per share and superior return on total capital," said Robert Mandos, AMETEK's Vice President and Comptroller.
About Oracle
Oracle Corporation provides the software that powers the Internet.
For more information about Oracle, please call (650) 506-7000.
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