Goodyear Partners With ICG Commerce on Procurement Initiative
Monday January 30, 8:00 am ET
World's Largest Tire Company Engages Procurement Services Provider to Drive Additional Cost Reductions in Support of Commitment to Maintain Profitable Growth
PHILADELPHIA, Jan. 30 /PRNewswire/ -- ICG Commerce, a leading procurement services provider, today announced that it has been engaged by The Goodyear Tire & Rubber Company to lead a strategic procurement initiative in North America, launched to support the company's commitment to achieving cost reduction goals. As part of the engagement, ICG Commerce is partnering with the company's internal procurement organization to drive cost reductions that are expected to have a multi-million dollar impact on the company's bottom line.
Goodyear is focused on building momentum and maintaining profitable growth by driving improvements and efficiencies in key operational areas. The world's leading tire manufacturer identified indirect procurement as a major element of the company's current cost reduction effort. Following a highly competitive evaluation process, Goodyear selected ICG Commerce as the specialist to support this effort in North America based upon the procurement services provider's operational approach, customized and flexible solutions, as well as its deep expertise.
"Partnering with ICG Commerce on our indirect procurement exemplifies our focus on driving a low cost structure, one of the seven key drivers contributing to our improved company performance," said Jonathan Rich, president of Goodyear's North American Tire business unit.
Goodyear's corporate sourcing team has already established significant savings opportunities through their ongoing strategic sourcing efforts. ICG Commerce's role is to ensure that the savings opportunities born from these efforts are fully realized, to identify and implement additional savings opportunities in indirect buying categories, and to drive year-over-year cost improvements.
To achieve that objective, Goodyear will leverage ICG Commerce's comprehensive procurement infrastructure consisting of category experts and process specialists, a best practice based Buying Center, and flexible tools and information to manage a broad spectrum of procurement processes including strategic sourcing, savings implementation, transaction processing, and ongoing category management. ICG Commerce will provide a comprehensive suite of services to not only help drive aggressive cost reductions in North America but also support and accelerate the utilization of the company's ARIBA e- procurement system.
"The combined efforts of our two teams of professionals will bring our procurement capabilities to a new level of performance," said Gary Miller, Goodyear vice president and chief procurement officer. "Our company has made good strides in identifying opportunities for savings and putting a platform in place to enable improved focus and line-of-sight alignment as well as to drive compliance through effective purchasing. ICG Commerce provides the in- depth category, process and operational expertise we need to make sure the savings are realized and continuously improved upon and the platform is fully utilized."
The ICG Commerce team will work as an integrated element of the existing indirect procurement organization, serving all of Goodyear's North American Tire and Engineered Products plant facilities at more than 40 locations. The program will focus on buying categories that fall into groupings such as transportation and distribution, packaging, energy, MRO supplies, marketing products and services, and professional services.
"Goodyear understands that procurement is a high-impact initiative that can significantly enhance company performance as well as its bottom line," said Edward H. West, chairman and CEO of ICG Commerce. "Our agreement is testament to the commitment Goodyear has made to truly maximize the value of procurement to reap savings opportunities. ICG Commerce looks forward to partnering with Goodyear to achieve its objectives."
About Goodyear
Goodyear is the world's largest tire company. The company manufactures tires, engineered rubber products and chemicals in more than 90 facilities in 28 countries. It has marketing operations in almost every country around the world. Goodyear employs more than 80,000 people worldwide.
About ICG Commerce, Inc.
ICG Commerce ( icgcommerce.com ) is a leading Procurement Services Provider exclusively focused on helping companies buy more effectively and efficiently in order to reduce costs significantly and continuously. The company offers an unmatched combination of process and category expertise, market insights and benchmarks and a world-class operational Buying Center to deliver Sourcing and Procurement Outsourcing Services. ICG Commerce Inc., a privately held company founded in 1992, is a member of Internet Capital Group's (Nasdaq: ICGE - News) network of partner companies. For four consecutive years, ICG Commerce has been as a Forbes Best of the Web: B2B honoree, and the company also has had multiple executives recognized in Supply & Demand Chain Executive magazine's annual "Pros to Know" listing. |
