elcom.com's PECOS Automated Procurement System
Goes Live With Major European Bank
Bank Re-engineering its Procurement with Intranet-based Automated Solution
NORWOOD, Mass.--(BUSINESS WIRE)--Feb. 18, 1999--elcom.com, inc., a wholly-owned subsidiary (formerly Elcom
Systems, Inc.) of Elcom International, Inc. (NASDAQ:ELCO - news), today announced that a leading European bank which
licensed its PECOS Procurement Manager (PECOS.pm) software in December has ''gone live'' in its pilot phase in the United
Kingdom. When the pilot phase is completed, the bank intends to implement PECOS.pm's full-circle solution in the United
Kingdom and subsequently in many of its international offices to automate their internal and external procurement process. This
is expected to reduce their administrative costs of purchasing various commodity products and allow them to focus spending
through strategic suppliers.
''Due to a confidentiality agreement in place between this bank and elcom.com, we are not able to name our customer at this
time,'' said Robert J. Crowell, Elcom International's Chairman and Chief Executive Officer. ''We are able to state that the
bank's selection committee chose PECOS.pm because it offered a complete intranet browser-based solution, from product
selection through EDI automated financial settlement, in a fast deployment with seamless integration with its back-office
processing systems, without significant professional services costs. PECOS.pm also provided a self-managing solution which
interfaces with the company's ERP systems, which will dramatically lower the internal costs of an order cycle. We believe that
companies on average spend about $125 to process a purchase order through the delivery of a product, but can reduce that
expense to as little as $10 through automation via PECOS.pm.''
''The return on investment for automated procurement applications is very compelling because they enable comparative buying
practices, support more effective supply management, reduce inventory requirements and extend control over renegade
purchasing,'' said Tim Minahan of Aberdeen Group, Inc., a research firm covering the emerging category of automated
procurement systems.
PECOS.pm provides client's personnel with browser-based self-service purchasing functions directly from their desktops,
including multi-vendor electronic catalogs that support standard or negotiated ''custom'' pricing with preferred suppliers.
PECOS.pm's full-circle functionality improves service at all levels, including supporting ''order status'' inquiries (via the client's
intranet) throughout the entire transaction cycle through customer-definable controls that support multiple level automated
e-mail purchasing authorizations with time-stamped audit trails.
Additionally, PECOS.pm reduces the administrative costs by reengineering core procurement activities to include decreasing
order and invoice processing costs and by eliminating most of the manual processing and inventory and related carrying costs.
PECOS.pm also minimizes maverick spending where possible by channeling spending through strategic suppliers which reduces
product costs and generates increased volume discounts. Lastly, PECOS.pm captures purchasing data on supplier
performance for timely and easy-to-understand metrics to aid in supply management decisions. The selection committee of this
bank chose PECOS.pm to control the purchase of virtually all goods and services, and may choose to use it to introduce
standards in many of its offices globally to reduce costs at its international branch offices.
''We are delighted to provide this solution to help our clients to realize the benefits of automated procurement,'' said Paul Rose,
elcom.com's Vice President for European System Sales. ''This client will build on our experience in the financial services
market, where globalization has put an increased emphasis on efficient supply chain management. We look forward to ongoing
collaboration with this leading bank to bring many of their suppliers online with the new system.''
Mr. Crowell added, ''This license expands elcom.com's PECOS.pm customer licenses into the European marketplace and
prepares the way for future European licenses. In addition, feedback from this licensee will be instrumental in the design of our
next version of PECOS.pm, which is targeted for release in March. This licensee was already an Elcom Services Group
customer familiar with the benefits of our electronic commerce applications and elcom.com will continue to look for
opportunities to promote PECOS.pm to other Elcom Services Group customers in both the U.S. and the U.K.''
About Elcom International, Inc.
Elcom International, Inc., through its wholly-owned subsidiaries, develops, licenses, and uses client/server and Internet
transaction-based software systems which enable the conduct of PC-based interactive electronic commerce over the Internet
and telephone networks. Elcom Services Group, Inc., the Company's PC remarketing and professional services subsidiary,
uses the Company's electronic commerce technology to support the marketing of PC products and now operates seven field
sales and support offices in the United States and seven in the United Kingdom. elcom.com, inc., (www.elcom.com), was
formed in December 1998 and recently merged with Elcom Systems, Inc., the Company's technology and electronic commerce
subsidiary. elcom.com will operate as an Internet on-line remarketer of PC-oriented and other products using the Company's
electronic commerce and automated procurement and sourcing technology. In this market sector, elcom.com will compete
against companies like Cyberian Outpost, Inc. (NASDAQ:COOL - news), Creative Computers, Inc. (NASDAQ:MALL -
news) and Insight Enterprises, Inc. (NASDAQ:NSIT - news). Additionally, elcom.com licenses its PECOS technologies to
Elcom Services Group's customers and to other companies and competes against companies like Concur Technologies, Inc.
(NASDAQ:CNQR - news).
Statement Under the Private Securities Litigation Reform Act.
This press release includes statements that may constitute forward-looking statements. All statements other than statements of
historical fact, including, without limitation, those with respect to the Company's objectives, plans and strategies set forth herein
and those preceded by or that include the words ''believes,'' ''intends,'' ''expects,'' ''will,'' ''plans,'' ''anticipates,'' or similar
expressions, are forward-looking statements. These statements are subject to risks and uncertainties that could cause actual
results to differ materially from the forward-looking statements. Such risks and uncertainties include: customers' acceptance and
usage of the Company's electronic commerce software systems and the impact of competitive technology products as well as
factors and other risks detailed in the Company's 1997 Annual Report on Form 10-K and from time to time in the Company's
other reports filed with the SEC.
Contact:
Elcom International, Inc.
Investor Relations: Tom Barth, 781-501-4094
Homepage: www.elcominternational.com |
