FreeMarkets, Inc. (Pittsburgh, PA, U.S.), a provider of global supply management (GSM) solutions, announced that it has signed a long-term, global agreement with Swedish-based appliance maker AB Electrolux.
According to a press release from FreeMarkets, under the terms of the agreement, Electrolux will use a suite of FreeMarkets solutions to drive savings and efficiencies across its global operations, including the following: FreeMarkets FullSource, FreeMarkets QS and FreeMarkets Supplier Implementation.
The agreement follows the completion of a successful pilot that FreeMarkets began with Electrolux Home Products in 2002.
"Cost-efficiency is a cornerstone of Electrolux's business, and as such, we are committed to identifying innovative solutions that enable us to identify savings across our organization," Fabio Pigo, e-Business Director, Corporate Purchasing, AB Electrolux, said in a written statement.
"FreeMarkets provides us with software and services that allow us to better leverage our corporate commodity teams and spend to lower our costs," Mr. Fabio said. "Based on the success we have had with these solutions during the pilot projects in our Electrolux Home Products North America sector, we are rolling them out on a global basis."
Michael Rager, vice president, Electrolux Home Products North America, added: "FreeMarkets is unique in its ability to provide software to drive sourcing projects as well as commodity and sourcing expertise to support its use and ensure optimal results. During our pilot with FreeMarkets, we sourced more than U.S. $75 million in goods and services, and identified savings of more than 28 percent."
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