Owens Corning praised for e-sourcing efforts

Building products manufacturer Owens Corning was one of nine companies named as “best practice” leaders in e-sourcing by the Boston-based research firm, the Aberdeen Group. The companies were named in…

Building products manufacturer Owens Corning was one of nine companies named as “best practice” leaders in e-sourcing by the Boston-based research firm, the Aberdeen Group. The companies were named in a new report titled, “Best Practices in E-sourcing,” which highlights the e-sourcing strategies and successes of nine companies through detailed case studies demonstrating best practices in electronically enabled sourcing processes. To better understand the strategies required for e-sourcing success, Aberdeen examined e-sourcing strategies at more than 60 companies, ultimately selecting nine winners that demonstrated outstanding strategic e-sourcing practices. According to the Aberdeen report, “research strongly suggests that e-sourcing has helped enterprises overcome the challenges that have kept them from successful strategic sourcing, including fragmented processes, poor spend and market intelligence, labor-intensive and time-consuming activities, and inconsistent sourcing skills across the enterprise. E-sourcing dramatically reduces transaction costs, increases market transparency, and instills discipline and consistency into the sourcing process by forcing enterprises to follow detailed specifications and by providing a single platform for standardization and knowledge management.” Five of the nine companies, including Owens Corning, use Ariba Spend Management software to help control their costs. Ariba President Dave McCormick said: “These accolades from Aberdeen are further evidence that our customers are using the latest technology to successfully manage spend and reap saving across their enterprise.” The Aberdeen study also concluded that e-sourcing has become a standard procedure for Fortune 100 companies. Aberdeen reported that e-sourcing technologies go beyond online negotiations to instill process and consistency and knowledge management throughout the enterprise.