8/05/04

Proven Online Sourcing Platform Now Available as Self-Service Product, Saving Companies Time and Money

Paul Demery , Managing Editor, B2B E-commerce

DAVACO Sourcing unveils new model with free trial offer

DALLAS (Aug. 2, 2004) – DAVACO Sourcing Inc., a leading provider of online sourcing services, today announced the launch of a self-service product that enables companies to manage sourcing programs and conduct unlimited online negotiations using its patent-pending platform known to save clients an average of 25 percent on sourcing and reducing procurement cycle time by up to 50 percent. Based on client demand and feedback, the company developed this independent option that makes it possible for clients to further extend the value of sourcing with a flexible, secure web-based format.

In conjunction with the launch, DAVACO is offering a free trial for companies to conduct an online sourcing event and view the ease of use and impact first-hand.

DAVACO Sourcing’s self-service product enables users to tap into a global network of qualified, pre-screened suppliers who provide competitive bids on goods and services. Companies independently manage either a portion or their entire sourcing program for direct and indirect spend items using the platform, which has been proven to affect purchases from as small as $10,000 to multiple millions of dollars. To ensure sourcing program integrity and benefits, the Company’s self-service product includes best practice training and education for users as well as auditing by DAVACO Sourcing to monitor each sourcing event.

DAVACO’s self-serve platform features proprietary 3-D Technology and CAD visuals to help participating suppliers actually view the item(s) being discussed for bidding, which guarantees that suppliers are bidding on the appropriate product. Another unique feature is the open-forum format. Suppliers, who are anonymous to competing suppliers, can submit questions to the purchasing agent, who will then respond with the answer – which is posted to all participating suppliers. Once again, this is DAVACO’s assurance that all competing suppliers have common information from which they can develop specific pricing bids.

"As a full-service DAVACO Sourcing client, we realize the benefits of online sourcing, which is proving to be a real revolution in business processes. We have utilized the full-service concept for over two years now and have many attention-getting results to talk about with large dollar purchase auctions," said Jim Harvey, Executive Vice President, Operations for Belk Department Stores. "We are now ready to embark on our next phase of delivering more value and cost effectiveness to the lower dollar purchase categories and we`re encouraged that companies now have the option to use self-serve online negotiation technology. We believe this tool will expand opportunities to source greater categories, present a fair trading floor for participating vendors and will empower businesses to better manage and execute the procurement process. Anyone, who has purchasing responsibility of any size, who is not yet pursuing these types of on-line tools and intelligent fact-base procurement approaches is definitely missing a significant opportunity."

The product announcement was part of DAVACO’s annual Executive Roundtable, a client event that brings together an elite group of sourcing leaders for working sessions and discussion of industry trends.

"We work closely with clients to constantly refine our services. This product was designed directly around our clients’ needs and desires to expand the use of the platform across their organizations," commented Rick Davis, CEO of DAVACO Sourcing. "Launching a self-service product allows us to extend the benefits of our platform to better help companies save time and money on sourcing. The results our clients achieve continue to increase – a trend we expect to see continue. In fact, last year we saved one client more than $24 million on sourcing within just one purchasing group."

Davis explained that purchasing agents will realize many benefits from DAVACO’s self-service product, including a cost-effective process that is timely, easy to use and provides them access to additional competitive vendors. They also will have the ability to tailor the bidding process to include specific types of suppliers, such as smaller, regionally owned companies or habitually underutilized businesses (HUBs). Equally important, suppliers can participate at no cost and will now have a new sales channel for increased business opportunities.

Andy Kyte, Industry Trends Research Vice President, Gartner Inc., participated in DAVACO’s Executive Roundtable where the new product made its debut. He noted, "Procurement processes have to deliver best pricing to the business, but they also must deliver the optimum use of the buyer`s time," said Kyte, "Self-service sourcing solutions enable buyers to become more productive and deliver great bottom-line value."

DAVACO Sourcing’s self-service sourcing product is available on an annual subscription basis, which entitles clients to unlimited use, comprehensive program training, access to the global supplier network, and event auditing and support from the company. The sourcing platform features a clean, user-friendly interface and online forum that increases communication between clients and suppliers as well technology that integrates 3D illustrations, animated views and CAD drawings.

To participate in an online presentation, please contact Gena Kay Dixon, DAVACO Sourcing Vice President at genakay.dixon@davacosourcing.com or 1-877-987-4900 ext. 338.

About DAVACO Sourcing
DAVACO Sourcing is a leading provider of online global sourcing and procurement services and technology. The company’s patent-pending platform saves clients an average of 25 percent on sourcing and reduces procurement cycle time by up to 50 percent. Founded in 2000, the Dallas-based company provides a powerful and dependable link between retailers and suppliers. For more information or to conduct a free trial using DAVACO Sourcing’s self-service product, visit www.davacosourcing.com.

Topics:

Co-sourcing, E-procurement, Purchasing, Sourcing, Strategic sourcing

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