Peregrine Systems, Inc, one of the world`s largest software companies, represented locally by MGX, today announced that its Lifecycle Procurement solution generated more than $60 million in software licence revenue in its first full fiscal year on the market. This achievement makes it not only the fastest-growing product in the company`s 20-year history, but also one of its most successful enterprise software launches ever.
Peregrine`s Lifecycle Procurement dramatically increases an organisation`s return on invested capital (ROIC) by improving asset productivity and profitability by as much as 40%. The software solution, which is built on Peregrine`s revolutionary integration of e-Procurement and asset management applications, is the first to automate both the transaction cycle (from requisition to payment) and the asset lifecycle (from requisition of an asset to its retirement).
Using the Lifecycle Procurement solution, organisations can "e-procure" the infrastructure assets they require to operate - from IT equipment to office furniture. The solution then allows them to manage these assets as they are used in the organisation - from installation, change management and servicing to final retirement. More than 80 leading companies and financial institutions globally have adopted Peregrine`s Lifecycle Procurement solution, including Fujitsu, International Paper, Ralph Lauren Polo, Qualcomm and Williams Communications.
"First generation e-procurement systems only focus on a small percentage of the purchase processes and lack the capability to provide the crucial line-item asset data," said Frances O`Brien, analyst, Gartner Inc. "Newer e-Procurement solutions have more powerful workflow engines that go beyond approvals and integrate to all suppliers to minimise total cost and maximise profitability."
A key factor in the success of Peregrine`s Lifecycle Procurement solution is the power of the company`s trading hub, Get2ConnectSM (www.get2connect.net), which is currently processing 1.2 million transactions daily valued at $280 billion annually. Get2Connect integrates more than 40 000 trading partners, including the leading suppliers of infrastructure assets and related products and services.
Peregrine`s Lifecycle Procurement solution extends beyond traditional e-Procurement because it also integrates with those companies that provide the services used to buy, manage and retire infrastructure assets, thus optimising the entire lifecycle chain. With Get2Connect, companies can handle their entire transaction electronically with their managed service providers, asset retirement vendors (such as RetroBox and Redemtech) and leasing vendors.
"Our customers truly understand the unique value of combining e-Procurement and asset management," said Steve Gardner, Peregrine chairman and CEO. "They are implementing our new generation of solutions so that they can optimise asset acquisition, increase service life and reduce the total cost of ownership. Peregrine`s Lifecycle Procurement solution reduces total costs by 15% to 20% and improves asset productivity by a similar factor, resulting in ROIC improvement by more than 40%.
Leading infrastructure management providers are Peregrine`s supplier partners. They include IT companies (such as Compaq Computer, Dell Computer, Hewlett-Packard and Sun Microsystems) office furnishings manufacturers (such as Herman Miller, Knoll and Steelcase), office supplies distributors (such as Boise Cascade Office Products, Office Depot and Staples), print procurement and management services (such as SMARTworks.com) and maintenance, repair and operating (MRO) distributors (such as WW Grainger Inc).
"Peregrine`s procurement solution is simply unique. It focuses not only on simplifying the requisition to check process for procurement, but also optimises the asset lifecycle. We expect it to help us reduce our costs and our customer`s costs. It will also dramatically improve the efficiency for our procurement process, and equally, improve the ROIC of our customers businesses," Simon Farmer, director of Productivity Centre Business, Fujitsu ICL Systems Inc.
"Our customers recognise significant value in our combined e-procurement solutions," said Curtis Hutcheson, director, B2B Programs, Compaq Worldwide E-Business Systems. "Peregrine`s strength in procuring and managing complex MRO assets, such as IT equipment, creates a natural synergy when combined with Compaq`s product offering and leadership in the B2B space."
"Through the rich functionality of the StaplesLink Web site, or through a procurement solution such as Peregrine`s, Staples makes purchasing office supplies more efficient for its customers," said Anne-Marie Keane, vice president of B2B e-Commerce, Staples. "Peregrine has the ability to support multiple XML standards, enabling Staples to leverage its existing B2B capabilities. We can connect with the Peregrine network quickly and with minimal use of resources."
"We are pleased to be a supplier partner in Peregrine`s Lifecycle Procurement solution," says Monica Luechtefeld, Executive Vice President, E-Commerce, Office Depot. "Our customers recognise the importance of using technology to automate e-Procurement and drive down costs. Peregrine`s solution offers not only e-Purchasing functionality, but also asset management integration, which is a `win` for our customers and for Office Depot."
"The real value of Peregrine`s solution is that it does not simply automate the purchase process," according to Jeff Berryman, manager - IT Asset Management, International Paper.
Components of Lifecycle Procurement
The Lifecycle Procurement solution includes:
e-Procurement Buy Side: Get-Resources automates the procurement process by allowing employees to initiate requests from an electronic catalogue, route orders through a pre-defined approvals process and then facilitate the electronic exchange of purchase orders, invoices and other documentation.
e-Procurement Sell Side: Peregrine has developed a set of tools for Collaborative Partner Automation. More than 40 000 suppliers have been integrated to date, while catalogue services provide for data normalisation and rationalisation.
Lifecycle Hub: Peregrine`s Get2Connect provides a hosted network for buyers, suppliers and marketplaces to transact readily across multiple languages and transmission requirements.
Lifecycle Infrastructure Management. Peregrine`s end-to-end asset management solutions, which includes AssetCenter and ServiceCenter product suites, make it possible to track, measure and automate the processes that occur after acquisition, including installation, maintenance/repair, movement/change and, finally, re-deployment or disposal.
Employee Relationship Management. Get-Services and Get-Answers are part of Peregrine`s Employee Relationship Management solution set, which give employees the tools to report problems, check status and search for answers easily across all assets, including IT and facilities, which significantly reduces the total cost of these assets.
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