Ariba, Inc the leading business-to-business (B2B) eCommerce solutions provider, and The Home Depot, the world’s leading home improvement retailer, today announced that The Home Depot has selected the Ariba Buyer and Ariba Sourcing solutions to manage its corporate spend, increase procurement efficiencies and improve trading partner relationships.
The Home Depot will use Ariba’s integrated eProcurement and enterprise sourcing solutions to manage the buying process including operating resources, services, store capital, and eventually goods for resale. The Home Depot will use Ariba Sourcing to locate suppliers, generate requests for quotations, and negotiate contract terms. The Home Depot will use Ariba Buyer to allow store associates to easily buy against these contracts, thus streamlining and directing corporate-wide spend to preferred suppliers.
As part of our recent efforts to leverage our buying power and lower sales, general and administration (SG and A) costs per store, we explored eSourcing tools, but also needed a way to turn auction results into actionable contracts that store associates could access and purchase against. Ariba’s integrated approach was appealing as it closed the procurement loop, said David Strauss, vice president of Purchasing for The Home Depot. Ariba’s proven scalability, robust functionality and retail-relevant supplier community were all critical factors when selecting a technology provider, and we’re confident the Ariba solutions will allow us to quickly streamline procurement processes and reduce costs.
The Home Depot clearly understands that spend management is a key focus for companies who are serious about improving their leadership position and passing on benefits and cost savings to their customers, said Keith Krach, chairman and interim CEO, Ariba. We’re very excited to add The Home Depot to our client roster of leading retailers and consumer package goods (CPG) companies, and will work closely with them for a smooth deployment, and to help ensure they fully leverage the Ariba solutions for maximum and on-going ROI.
The Ariba Buyer and Ariba Sourcing solutions will address The Home Depot’s eProcurement objectives such as improved analysis and consolidation of enterprise-wide spend, elimination of off-contract purchasing, enhanced visibility into enterprise spend history, and improved speed to market for new products and programs.
The first phase of implementation of the Ariba solutions is expected to include 50 stores and be completed by the end of the year.
SOURCE: COMPANY PRESS RELEASE
