BAE Systems expands its supplier relationship management deployment

Aerospace and defense systems giant BAE Systems has expanded its deployment of i2 Supplier Relationship Management (SRM) solutions to additional sites in North America, Australia and the United Kingdom. To date, more than 75 BAE Systems sites have deployed i2 SRM to aggregate and analyze almost $8 billion in spend.

An i2 SRM customer since 1997, BAE Systems has been able to use the strategic sourcing tools to help consolidate its supplier base and reduce its cost of goods sold through improved overall spend visibility across more than 45 transaction systems. By using the solutions to establish and execute global sourcing strategies based on procurement and sourcing needs across the entire corporation, rather than the needs of individual business or geographical units, BAE Systems can better determine optimal sourcing strategies for each commodity and supplier.

The expansion of the SRM solutions across the company will allow BAE Systems to get global visibility of its expenditures, which will help maximize buying leverage throughout its operations. BAE Systems is also using the solutions to track spend by country, which is becoming increasingly important for regulatory reasons.

"To stay competitive in our complex industry, we need to be able to manage sourcing and procurement in the most efficient way possible. Data management is at the heart of this," comments James Donlevy, business manager at BAE Systems. "The [SRM] software is helping us evaluate our spend more effectively, which leads to a more robust sourcing strategy, a right-sizing of our supplier base and a reduction of our overall material costs. We are happy with the value that our current SRM implementation has provided, which is why we have chosen to expand the program."

BAE Systems www.baesystems.com

i2 Technologies Inc. www.i2.com

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