Ariba, indirect spend, Harris Corporation, supply chain, BPO

Ariba selected to manage indirect spend at Harris Corporation

07 Oct 2005 | (News)

Ariba(R), Inc., the leading Spend Management solutions provider, has been engaged to manage indirect spend for Harris Corporation, a leading provider of communications products, systems and services for government and commercial customers.

Under the terms of a multiyear, enterprise-wide agreement, Ariba will serve as the supply chain operating system provider responsible for indirect spend management including analysis of requirements and sourcing, contract and transaction management and invoicing.

"The Indirect Spend Management program is an integral part of our Supply Chain Operating System," said Leon Shivamber, Harris vice president, Supply Chain Management and Operations. "By utilizing Ariba to manage indirect spend on our behalf, we can leverage the company-wide spend and focus our internal resources on more strategic areas, thereby improving our operational efficiency and enhancing our competitive position. We evaluated multiple providers and selected Ariba based upon their market-leading spend management category and process expertise, global shared-services organization, and world-class technology platform."

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"When outsourcing non-core functions such as procurement, some companies focus merely on reducing departmental operating budgets. Ariba helps achieve that goal, but this isn't where the real value in Procurement BPO lies," said Bob Calderoni, CEO, Ariba. "Our managed procurement service solutions are designed to help companies reduce the total spend in SG&A expense categories, thereby increasing earnings and making them more competitive by maximizing the value of their supply chain. Through this approach, procurement becomes a strategic advantage that can be used to improve and accelerate bottom line results."

The multiyear program will be implemented throughout the enterprise, across Harris's corporate headquarters and four global operating divisions. The program will address a broad spectrum of indirect spend categories such as Business Services, Travel, Insurance, IT Hardware and Software, Facilities, Telecommunications, Lab Supplies & Equipment, Capital Equipment & Supplies, Advertising, Print and Marketing, Industrial MRO, Utilities, and Office Supplies and Equipment.

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