Commerce One, the Business Internet Company, today announced that LG Electronics, one of the world's largest manufacturers of consumer electronic goods, has selected the Commerce One 5.0 suite of collaborative source-to-pay solutions to build a supplier relationship management (SRM) system. GTWEB Korea, a leading business-to-business e-commerce provider, will build and maintain the SRM system.
During a 60-day pilot, LG Electronics evaluated several e-procurement and e-sourcing solutions before selecting Commerce One 5.0 to power its complex supplier management system. The SRM system will help LG Electronics deliver a more competitive and efficient supply chain framework to manage its extensive supplier base. Commerce One's strategic sourcing solution will also help LG Electronics reduce the overall costs of buying goods and services and help reduce the cycle time for sourcing items and services.
"LG Electronics initiated this project to achieve better return-on-investment from the $4.9 billion purchasing activities we engage in every year," said LG Electronics vice president and CIO Youngmin You. "We expect purchasing costs to be reduced by about $190 million as the process of sourcing local and international suppliers becomes more efficient using the multi-language support of Commerce One 5.0. We also hope to increase internal efficiencies through the new system."
"LG Electronics is a prime example of a major Korean company using global auction and sourcing technology to deliver fast economic benefits and competitive advantage. We are pleased to be helping LG Electronics aggressively deploy and maintain this system," said Kyuho Ahn, president of GTWEB Korea.
Mark Hoffman, chairman and CEO of Commerce One, said: "Strategic sourcing streamlines the source-to-pay process, providing visibility and control across the entire purchasing process, which can deliver significant cost savings. We look forward to working closely with GTWEB Korea to enhance LG Electronics collaboration with its existing and new suppliers."
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Commerce One (Nasdaq: CMRC) is the Business Internet Company. Through its software, services, and global network of interconnected enterprises and e-marketplaces, Commerce One helps organizations reduce costs and drive productivity by automating business processes between buyers and suppliers. Visit www.commerceone.com for more information.
GTWeb Korea
GTWEB Korea supports the B2B Electronic Commerce solutions such as Internet procurement, logistics, payment, charge, auction and financial service as well as offering hardware and software, content management, business consulting and the customer service necessary for building e-marketplaces. Its main business focus is e-marketplace services, e-marketplace solutions and on-line bidding. For further information, visit www.gtwebkorea.com.
LG Electronics
LG Electronics is a major global player in electronics & telecommunications, operating 72 subsidiaries around the world with over 55 000 employees worldwide. LGE focuses on digital TV, CD-RW, DVD, CD-ROM, DVD-ROM drives, PCs, monitors, mobile handsets, CRTs and PDPs. LGE is strengthening core competencies even more to further its reputation as the "Digital Leader" in electronic products and equipment in the digital era. Visit www.lge.com for more information.