International Truck Selects Newview to Drive Savings and Stability in Raw Material Supply
FORT WORTH, Texas--July 19, 2004--| Initiative Part of Truck Maker's Company-Wide Campaign to Control Costs and Improve Supply Chain Efficiencies |
Newview Technologies Inc., the leading provider of direct material specification and procurement solutions, today announced that International Truck and Engine Corporation, a leading producer of commercial trucks, diesel engines and school buses, has selected Newview's Coordinated Network Procurement (CNP) solution as the technology backbone to manage its strategic cost reduction initiative for critical raw materials. Through the use of Newview's solutions, International plans to reduce its annual material costs.
Today's announcement marks an important milestone in the relationship between the two companies which began with Newview's comprehensive analysis of International's raw material spend. Earlier activity focused on detailing the complexity of International's multi-tier supplier network and the materials that flow through this network. With visibility to this critical information, International was in a position to leverage Newview's CNP solution to organize and govern sourcing and procurement processes through multiple tiers of International's parts and materials supply base. This approach ensures that International's part suppliers, both large and small, will receive a consistent level of service and quality and can operate as one, virtually integrated assembly operation. The company plans to enable the majority of its supply base in its Steel and Aluminum program within 120 days.
"It's an exciting time for International Truck as we expand our traditional business and see new opportunities in the government sector," said Ann Farrell, Vice President of Purchasing. "To meet our growth targets as well as the challenges of delivering quality products to the market at competitive prices, it's absolutely imperative that we proactively manage our raw material costs and ensure continuity of supply through efficient coordination of our network of Tier 1 suppliers and material sources."
With more than $50 million in raw material spend currently sourced by its Tier 1 community, International chose to re-structure this spend on behalf of its supplier network using Newview's Coordinated Network Procurement module to manage material specifications, part data, pricing and transactions in a common framework for the purchase of steel and aluminum. The program is initially being rolled out to nine parts suppliers that source materials from 26 steel sources globally.
"With thousands of part numbers, specifications and transactions for our steel and aluminum spend, we needed to find an efficient way to manage the complexities of our multi-tier procurement process and have the ability to track and summarize the ongoing activity," said John Fullager, the project leader driving International Truck's Steel and Aluminum Brokerage Program. "Initially, we were fearful that expansion of the program would be impossible with our current labor-intensive approach of spreadsheets, faxes, phone and e-mail. With Newview, we can immediately scale our program while focusing our energy and resources on strategic sourcing decisions. Our goal is to create the most efficient cost model possible."
Newview's CNP solution will be integrated into International Truck's Electronic Data Interchange (EDI) message infrastructure to coordinate an accurate exchange of information and material flow for specifications and price agreements. In addition, CNP will tie into International Truck's back-office systems to fully integrate the financial transactions.
"Leading manufacturing companies like International recognize the importance of unlocking value trapped in their raw material supply chain," said Scott Prince, Newview President and CEO. "We're delighted that International has selected Newview as its partner to drive this strategic initiative. At Newview, we are focused on helping companies manage the complexities of raw material environments."
About International Truck and Engine Corporation
International Truck and Engine Corporation is the operating company of Navistar International Corporation . The company produces International(R) brand commercial trucks, mid-range diesel engines and IC brand school buses and is a private-label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. With the broadest distribution network in North America, the company also provides financing for customers and dealers. Additionally, through a joint venture with Ford Motor Company, the company builds medium commercial trucks and sells truck and diesel engine service parts. Additional information is available at www.internationaldelivers.com.
About Newview Technologies Inc.
Newview Technologies Inc. (http://www.newview.com) develops direct material specification and procurement solutions that connect Product Development and Procurement. Companies that select Newview are able to create cost advantages by bringing visibility and control to raw materials and standard components. Built on Newview's flexible Network Business Process Architecture(TM), these solutions are easily configurable, work with existing business applications and can be deployed in 90 days.
Founded in September 1998, Newview Technologies Inc. is headquartered in Fort Worth, Texas, and delivers value for customers that include DaimlerChrysler, Ford Motor Company and BHP Steel. The company is supported by strategic investors led by Bessemer Venture Partners, Greylock, and Kleiner Perkins Caufield & Byers.