ICG Commerce Expands Services Procurement Solutions
Tuesday, November 02, 2004
New Program and Technology Enhancements Reinforce Ability To Help Companies Manage Both Purchase and Execution of a Wide Range of Services PHILADELPHIA - Tuesday, November 02, 2004
- ICG Commerce, a leading procurement services provider, today announced enhancements to its services procurement offering, including new category management programs and technology improvements designed to help companies further capitalize on untapped savings opportunities in service-related buying categories.
The latest research on the subject from the Center for Advanced Purchasing Studies (CAPS) shows that services represent nearly a third of companies' overall spend, yet few organizations manage this area of procurement as effectively as they would like to. Three-quarters of CAPS survey respondents describe purchasing and managing the delivery of services as either "difficult" or "very difficult" as compared to goods.
To address the market's need for greater control over services spend, ICG Commerce integrates deep category expertise with leading technology to help companies more effectively manage key buying categories such as labor, marketing services, facilities management, telecommunications services, and travel. The company's dedicated team of experts leverages category specific technology to help companies perform sourcing, day-to-day transaction management and category and vendor management services (VMS) that yield ongoing cost and performance improvements.
ICG Commerce's services eProcurement platform, allows companies to efficiently process transactions from a single interface, for many different types of services or payment structures - time-based, volume-based, project-based, fixed-price, contingency, retained, milestone and activity-based. ICG Commerce has enhanced its services procurement technology to allow "universal" requisitions to be established with activity-based rates. As service providers record which activities are performed, the system automatically applies the correct rate for each activity on bills and invoices, greatly reducing errors and time-consuming reconciliation activities. This new functionality can be broadly applied to many labor related service categories, including repair, installation, IT contracting, consulting, light industrial, training and others.
"Enterprise spending on services - ranging from temporary workers and consultants to marketing, legal and facilities management - represents a large but largely unmanaged proportion of enterprise spending," stated Andrew Bartels, Forrester Research Industry Economics and Data vice president in a report published earlier this year. "Standard eProcurement applications don't help because they only focus on the initial buying and not on the day-to-day management of services against a contract."
In addition to offering enhanced technology, ICG Commerce is also now providing ongoing Vendor Management Services (VMS) to support the day-to-day fulfillment and management of contingent labor related purchases. ICG Commerce experts leverage the RealExchange for Services technology to process temporary staff requisitions, ensure timely fulfillment of temporary staff orders and timecard approvals and provide ongoing user support and issue resolution.
The comprehensive and integrated model for services procurement has proven so effective that a number of companies including AVAYA, Vought Industries and QualxServ have engaged ICG Commerce to fully manage select service categories. Earlier this year, ICG Commerce was named a finalist in the Outsourcing Center's highly competitive Outsourcing Excellence Awards for its labor services procurement work on behalf of customer QualxServ.
"Companies that have initiated procurement improvement programs are expanding these programs to include services categories in order to deliver an even greater impact to the bottom-line," said Danny Ezrol, ICG Commerce's director of services sourcing and category management. "Having implemented services procurement programs for some of the world's leading companies over the past several years, it is clear that the proper balance of category sourcing expertise, technology and ongoing support can yield tremendous benefits in terms of impact to the bottom line as well as the ultimate quality of service received."
About ICG Commerce, Inc.
ICG Commerce is the leading procurement outsourcing
specialist delivering comprehensive source-to-pay services. Results-driven leaders access ICG Commerce's experienced resources and market intelligence to better manage procurement and logistics spend, gaining significant savings and enhanced visibility and control.
ICG Commerce is a privately held company founded in 1992 and a member of Internet Capital Group's (Nasdaq: ICGE) network of partner companies. The company has earned recognition from Forbes, Fortune, The International Association of Outsourcing Professionals (IAOP) and leading industry analysts for its leadership in procurement outsourcing. For more information: www.icgcommerce.com
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