CombineNet Enables Siemens' Worldwide Purchasing Optimization

PITTSBURGH, FEBRUARY 23, 2004 - CombineNet today announced Siemens Procurement & Logistics Services, LLC (SPLS) has chosen CombineNet's Decision-Guidance SystemsTM to enhance their worldwide services. Siemens Procurement & Logistics Services is a group within Siemens AG that specializes in procurement, logistics, consulting, and e-procurement services for all Siemens business units.

Through the use of combinatorial optimization, SPLS will be able to facilitate increased purchasing efficiency and help bring more savings to Siemens' bottom line.

CombineNet creates a truly free market exchange where buyers receive greater savings and suppliers are able to show their unique capabilities. By enabling Expressive CompetitionTM, a richer interaction between customers and suppliers, CombineNet is changing the way large spends from various categories are sourced.

"Siemens has been using online sourcing technology since the mid '90s and has already created a lot of savings," said Sebastian Kahlmeyer, Vice President of Siemens Procurement & Logistics Services. "We needed to continue to add value and manage increasingly complex sourcing scenarios without limiting our constraints. CombineNet quickly added value to Siemens' EBIT (earnings before interest and taxes) and that's where competitive advantage is really gained. They are definitely a preferred vendor for large spend categories in direct materials, indirect materials, transportation and services."

With the help of CombineNet, Siemens Procurement & Logistics Services created a new COPTM initiative - Combinatorial Optimized ProcurementTM - that ensures Siemens business units can achieve maximum savings in their relevant sourcing categories. Siemens Procurement & Logistics Services' COPTM initiative is a joint partnership between SPLS and CombineNet to integrate CombineNet's Decision-Guidance Systems with SPLS' sourcing expertise. This jointly developed solution allows Siemens business units to maximize savings on strategic spends and quickly gain data necessary for the decision-making process. "Siemens Procurement & Logistics Services is a company that has been a pioneer in online sourcing," said Tony Bonidy, CEO of CombineNet. "It is an honor for us to break new ground in procurement with them and deliver results that truly affect the bottom line. Siemens Procurement & Logistics Services is more than a customer of ours; they are a partner. Working with them has helped us improve our ability to save our customers significant sums of money on their most complex purchases."

CombineNet's Decision-Guidance Systems utilize a patented, combinatorial optimization technology to provide better answers to high-impact strategic business problems.

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