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FOR IMMEDIATE RELEASE

The Push for E-Tool Optimization

One common success factor for implementing e-tools is a thorough examination of current processes.

Tempe, AZ, August 1, 2007 – How do you get the most value from the e-tools available to your organization? When you couple the multiple uses for e-tools with varying agendas that each segment of the business might have, the supply management professional must set some priorities about using e-tools and the resources they require.

E-tools was the focus during a recent CAPS Research Critical Issues Partnership Event where some of the issues discussed included: the drivers and value proposition for e-tool initiatives; examples of the most common tools being employed; setting priorities for e-tool projects and lessons learned from e-tool implementations. Most of the companies who were represented at the partnership event reported the drivers for implementing and using e-tools included: cost management, the complex requirements being levied on the supply management organization both internally and externally, risk mitigation, cross-functional applicability, user benefits, and return on investment (ROI).

However, the best tools in the world won't be effective unless they are used properly. User compliance and change management are important to the success of implementation.

The CAPS Research report provides examples of large global firms who have had some success with e-tools. Tools have been used for supplier analysis and spend analysis, contract management/approvals, electronic ordering and invoicing, SOX requirements/reporting and e-sourcing/e-auctions.

When setting priorities about e-tool purchasing and implementation, some common practices that author Roberta J. Duffy details are to: consider the global impact, align the project with current executive focus, examine current processes and systems and identify gaps, prioritize for the greatest potential benefit, consider who will ultimately use the tools, consider the impact on suppliers and make sure someone owns the process.

For the firms attending the CAPS Research event, some lessons learned from e-tool implementation include: the importance of thoroughly examining current processes, knowing your own limitations, ensuring data is accurate, engaging all parties during training and education, considering what specific issues might arise as a tool is implemented worldwide and ensuring compliance and buy-in.

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This report is based on a CAPS Research Critical Issues Event in Somerset, NJ. Critical Issues Partnership Program Conferences come from our sponsors' desire to bring subject-matter experts (and those wanting information) together on a current crucial issue in supply, in a one-day focused meeting, organized by CAPS Research and held at a sponsor company's site.

Note: Click on the following link to access the Critical Issues report titled, “E-Tool Optimization”, included are case studies describing 4 global firms who have been relatively effective implementing e-tools: http://www.capsresearch.org/publications/pdfs-protected/cir072007.pdf

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CAPS Research is a nonprofit research organization founded in 1986 to provide leading research to our strategic-minded corporate sponsors and to the public. Our mission is to work in partnership with a global network of executives and academics for the discovery and dissemination of strategic supply management knowledge and best practices. CAPS Research is jointly sponsored by the W. P. Carey School of Business at Arizona State University, and the Institute for Supply Management™.

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