On-line procurement and cost savings

A new service business called The 21st Supplier will enable industrial manufacturing companies to extend their strategic sourcing programs to a larger base of suppliers.

Ingersoll-Rand has formed a new service business, called The 21st Supplier, which it hopes will enable industrial manufacturing companies to extend their strategic sourcing programs to a larger base of suppliers, leading to procurement efficiency and cost savings.

Based in Torrington, CT, The 21st Supplier, focuses on consolidating and managing direct material purchasing for major industrial manufacturing clients.

Strategic supplier programs typically focus on the top 80% of purchases, usually concentrated in a manufacturers’ top 20 suppliers. IR’s 21st Supplier is targeted at the remaining 20% of purchases, typically involving hundreds of suppliers, by improving inventory management, reducing transactions, and streamlining administrative activities.

The new business has signed two service agreements to deliver supply chain management solutions. SupplyWorks, of Bedford, MA, will provide integrated web-based e-procurement services, while Roberson Transportation, of Champaign, IL, will manage all freight requirements through its Worldwide Logistics Solutions division.

SupplyWorks is a provider of Web-based supply chain software that optimises the flow of production materials and information for manufacturers. Roberson Transportation has been providing freight management services for over 50 years.

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