AMETEK Accelerates To E-Business With Oracle(R) Internet Procurement
8 September 2000
AMETEK Accelerates To E-Business With Oracle(R) Internet Procurement
Global Manufacturer Expects to Save Millions
With Industry-Leading Procurement Solution
PAOLI, Pa., Sept. 8 AMETEK, Inc., a $1 billion
global manufacturer of electronic instruments and electric motors, today
announced that it is implementing Oracle Internet Procurement, with savings of
10 percent or more expected on its maintenance, repair and operating (MRO)
spending. When the Oracle procurement solution, a key component of the
integrated Oracle e-Business Suite, is fully implemented, AMETEK employees in
over 40 locations worldwide will use the system to purchase direct and
indirect items, gaining process efficiencies and leveraging corporate-wide
buying power to obtain better prices from suppliers.
"We conservatively expect our Oracle Internet Procurement initiative to
reduce our MRO spend by 10 percent, resulting in millions of dollars in
savings and a substantial positive impact on earnings," said William Lawson,
Vice President and Chief Information Officer for AMETEK.
Oracle Internet Procurement will replace a manually intensive,
decentralized requisition and payment process that did not give the company
visibility into its aggregate spending with suppliers. The Oracle solution
will enable AMETEK to leverage its corporate-wide buying power, thereby
helping negotiate better contracts with suppliers and substantially reducing
spending.
AMETEK's Oracle solution, including Oracle Internet Procurement and Oracle
Purchasing Intelligence, will initially be deployed in North America to manage
indirect spending on items such as factory and office supplies. The solution
will subsequently be rolled out globally and used for all direct and indirect
purchasing. In addition to Oracle's leadership in e-business and ability to
provide global support, the Oracle procurement solution was selected based on
its ability to support international operations.
AMETEK's decision builds on a long-standing relationship with Oracle. The
8,000-employee company first selected Oracle in 1996 and uses Oracle
Manufacturing and Supply Chain, Financials, database technology and tools to
improve its operational efficiencies and better manage its worldwide business.
As a key part of the procurement initiative, AMETEK also is centralizing
its accounts payable functions across multiple divisions to gain economies of
scale. Oracle Internet Procurement will be fully integrated with Oracle
Financials -- reducing manual data entry and resulting in greater efficiency.
On the back end, Oracle Purchasing Intelligence will allow the company to
continuously improve its processes and reduce costs by analyzing purchasing
habits such as catalog versus non-catalog spending. "Leveraging Oracle e-
Business technologies company-wide helps AMETEK sustain its double-digit
annual percentage growth in earnings per share and superior return on total
capital," said Robert Mandos, AMETEK's Vice President and Comptroller.
Corporate Profile
AMETEK is a leading global manufacturer of electronic instruments and
electromechanical equipment with 1999 sales of $925 million. Its Corporate
Growth Plan is based on Four Key Strategies: Strategic Acquisitions & Joint
Ventures, Global & Market Expansion, New Products and Operational Excellence.
Its objective is double-digit percentage growth in earnings per share from
continuing operations and a superior return on total capital. The common
stock of AMETEK is a component of the S & P Mid-Cap 400 Index and the Russell
2000 Growth Index.
About Oracle
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Internet. For more information about Oracle, please call 650-506-7000.
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Contact: William J. Burke 610-889-5249