MOLINE, Ill., May 17 /PRNewswire/ -- In a test of on-line bidding,
Deere & Company (NYSE: DE) held a competitive bidding event conducted by
FreeMarkets, Inc. (Nasdaq: FMKT) Tuesday during which a carefully selected
group of qualified suppliers from around the world put forth their best price
quotes for more than $26 million of components for John Deere products.
"This was a test to see if we can integrate on-line bidding into our
global sourcing processes," said Jim Olson, supply management director for
Deere Power Systems Group.
Deere has remained a technological leader by integrating the latest
developments in communications and computing into its proven business
processes. "We use technology whenever it promises to add to our speed,
increase quality, and lower costs," Olson said.
In on-line price quoting through the FreeMarkets(R) B2B e-Marketplace,
potential suppliers quote prices they would charge for the components, while
buyers watch. The suppliers can see other bidders' quotes, but not who made
them. The Tuesday event was the first of four that will solicit price quotes
on components for products made by Deere's equipment divisions.
FreeMarkets creates on-line bidding events for its customers by supplying
the infrastructure and providing support from its operations center in
Pittsburgh, Pa.
Well before the market event, Deere had already completed pre-bidding
work, including preparation of a bid package of product and delivery
specifications and a thorough screening of potential worldwide suppliers
through its strategic sourcing process.
That process is accomplished by a team of supply management specialists,
engineers and production specialists who define a sourcing strategy for the
parts and identify potential suppliers. Those suppliers who are able to meet
Deere's requirements and decide to bid are invited into the competitive
bidding event. FreeMarkets outfits the suppliers with software and trains
them in how to submit price quotes during the event.
The event was watched by team members at Deere's plants in Waterloo and
Dubuque, Iowa, and Saran, France, as well as at corporate headquarters in
Moline, Ill.
Following the on-line bidding, the Deere & Company team will select
suppliers. Olson said Deere would validate the bids with a visit to any
winning bidders who are new suppliers to Deere. Nine of the 16 companies that
participated in the competitive bidding event Tuesday are already Deere
suppliers.
Olson said the FreeMarkets on-line competitive bidding could shorten to
one day a process that normally can take months of bid evaluations and
negotiations with several potential suppliers.
Deere & Company (NYSE: DE) is the world's leading producer of agricultural
equipment and a leading manufacturer of equipment for construction, forestry
and lawn and turf care. Additionally, Deere provides credit, special
technology, and managed care products and services.
FreeMarkets (Nasdaq: FMKT) is the original and world's leading B2B
eMarketplace, with on-line markets for industrial parts, raw materials,
commodities and services. FreeMarkets is the only B2B eMarketplace that
includes industry-leading on-line auction technology, technical operations,
industrial market making services, access to a global database of suppliers
and supplier research, call center support to buyers and suppliers in over 30
languages, and marketplace rules.
CONTACT: Bill Jacobs of Deere & Company, 309-748-5193 or
jacobswilliamh@jdcorp.deere.com, or Karen Kovatch of FreeMarkets,
412-297-8767, or kkovatch@freemarkets.com
SOURCE FreeMarkets, Inc.
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Related links:
http://www.freemarkets.com
CONTACT:
Bill Jacobs of Deere & Company, 309-748-5193
or jacobswilliamh@jdcorp.deere.com, or Karen Kovatch of
FreeMarkets, 412-297-8767, or kkovatch@freemarkets.com
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