Strong Results Drive Timken to Renew Procurement Partnership with ICG Commerce
Monday, July 10, 2006
Highly Engineered Bearings and Alloys Manufacturer Extends Agreement for Five Years, Expands Initiative to Include Full Procurement BPO PHILADELPHIA - Monday, July 10, 2006
- ICG Commerce, a leading procurement services provider, today announced a long-term extension of its strategic procurement engagement with the Timken Company (NYSE: TKR), a $5.2 billion industrial technology company. The renewal extends through April 2011 and includes a major expansion of the initiative in which ICG Commerce will provide full business process outsourcing (BPO) services to help the company manage transportation, plant services and maintenance/repair/overhaul (MRO) buying categories for the company while also supporting sourcing-related activities in the areas of travel and packaging.
The new agreement builds on the strong results of a partnership that began in April 2002. By moving from regional to national sourcing and taking a comprehensive approach to procurement by leveraging ICG Commerce resources, expertise and technology, Timken was able to accelerate the realization of savings while creating centralized purchasing capabilities to support its expanding global manufacturing operation. The expansion included the acquisition and successful integration of Torrington in early 2003. "Timken has realized significant savings through ICG Commerce's strategic and comprehensive approach to procurement," said Glenn Eisenberg, executive vice president of finance and administration for the Timken Company. "We look forward to the next step in our partnership with ICG Commerce and achieving even greater results over the next five years."
"While we have always had a progressive procurement organization, the continuing growth of our business and the increasing breadth of our product portfolio created a need to develop an infrastructure for managing complex supply bases and, at the same time, simplifying the procurement process," said Mike Hill, senior vice president of supply chain management for the Timken Company. "In order to fully realize the savings goals set for the company, we recognized that we would have to evolve our procurement initiative from a series of sourcing events to a more comprehensive, holistic program including implementation, transaction management and category management services as well as process and technology improvements. ICG Commerce has played a key role in making that happen."
The procurement synergies gained over the past four years have led Timken to fully leverage ICG Commerce to help them manage a large percentage of its indirect spend. In total, the agreement covers nearly 25 buying categories feeding into 40 plus facilities across North America.
The move is reflective of the growing trend toward procurement BPO
, where ICG Commerce stands as the market share leader, according to multiple industry experts.
About The Timken Company
The Timken Company (NYSE: TKR) (www.timken.com
) is a leading international developer of highly engineered bearings, alloy and specialty steels and components, as well as a provider of related products and services. With operations in 27 countries, the company employs about 26,000 people worldwide and recorded 2005 sales of U.S. $5.2 billion.
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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