Royal Mail Drives Major Cost Savings Through FreeMarkets; UK Postal Service Achieves Significant Return on Investment Using FreeMarkets Global Supply Management Solutions.Business Editors PITTSBURGH--(BUSINESS WIRE)--Dec. 15, 2003 FreeMarkets, Inc. (Nasdaq:FMKT FMKT Freemarkets, Inc. (stock abbreviation, AMEX) ), the leading provider of global supply management (GSM (Global System for Mobile Communications) A digital cellular phone technology based on TDMA that is the predominant system in Europe, but also used worldwide. Developed in the 1980s, GSM was first deployed in seven European countries in 1992. ) solutions, today announced that it is working with Royal Mail Group plc, the United Kingdom's public mail service company. Under the terms of a recently signed agreement, Royal Mail is using FreeMarkets' GSM solutions, including FreeMarkets(R) FullSource(TM), FreeMarkets(R) QS(TM) and supporting services, to lower its costs and reduce supply risk. The agreement follows the completion of a successful pilot project. "We are reinventing our business to meet the changing needs of our customers and the demands of competition," said Peter Stevens Peter Stevens (born 1945) is a British car designer. Having worked freelance for most of his career, and spent five years at Lotus Cars he took a job as lead designer at the MG Rover Group in 2000. He is the visiting Professor of Vehicle Design at the Royal College of Art. , Procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. Head of Technology Development and Exploitation at Royal Mail. "In particular, Royal Mail is embracing innovative solutions from FreeMarkets to generate major savings and efficiencies." Under the terms of its agreement with FreeMarkets, Royal Mail is using a suite of FreeMarkets solutions, including FreeMarkets FullSource. A comprehensive set of services designed to help companies accelerate savings, FreeMarkets FullSource combines the most advanced technology available with expert services in hundreds of spend categories; industry-specific program management; around-the-clock global market operations services; information and knowledge about specific commodities and supply market dynamics. Royal Mail has already identified savings of approximately GBP GBP In currencies, this is the abbreviation for the British Pound. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 2.5 million through three FullSource projects, of which it has implemented GBP 2 million. "That has given us a return-on-investment of approximately 17-to-1 based on the identified savings and 13-1 on the implemented savings," Stevens continued. In one event for international air freight air freight n → flete m por avión air freight n → fret aérien air freight air n → Luftfracht f , Royal Mail achieved significant savings despite a tough market environment. "Due to the decline in transatlantic travel and consequent con·se·quent adj. 1. a. Following as a natural effect, result, or conclusion: tried to prevent an oil spill and the consequent damage to wildlife. b. cancellation of many flights, air freight capacity has significantly decreased. So the buying team expected price increases on North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. lanes in particular," said Stevens. "With the help of FreeMarkets, we contacted 70 airlines and agents and 25 participated in the online event for more than 100 individual lanes connecting three UK origin points with 40 destinations in 24 countries," Stevens recalled. "Suppliers bid by lane, and by loose kilogramme or by ULD ULD Unabhängiges Landeszentrum für Datenschutz Schleswig-Holstein (Germany, Independent Centre for Privacy Protection Schleswig-Holstein) ULD Unit Load Device (shipping) , allowing us to calculate the most efficient transportation mode through a built-in formula." At the conclusion of the project, Royal Mail identified savings of 9.4 percent, and a 30-1 return on investment. As part of its agreement with FreeMarkets, Royal Mail is also using FreeMarkets QS, the industry's leading sourcing application. To date, Royal Mail has completed approximately 28 projects using FreeMarkets QS, and identified savings in excess of GBP 800,000. "We've found that an extraordinary range of goods and services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax. are suitable for online bidding events, from international air freight to pillar box pillar box Noun (in Britain) a red pillar-shaped public letter box situated in the street Noun 1. pillar box - a red pillar-shaped letter box postbox, letter box, mailbox - public box for deposit of mail locks," said Stevens. "All of these savings mean reduce costs and greater efficiencies." "Royal Mail is a visionary among public entities in the use of innovative solutions to enhance organizational performance Organizational performance comprises the actual output or results of an organization as measured against its intended outputs (or goals and objectives). Specialists in many fields are concerned with organizational performance including strategic planners, operations, ," said Shane Tulloch, Senior Vice President and Managing Director, FreeMarkets Europe. "Royal Mail saw the value of technology-based sourcing early on, and has aggressively adopted and implemented a powerful combination of software and services to drive not only savings, but efficiencies in its processes. We look forward to continuing to provide them with solutions which they can leverage to gain and maintain competitive advantage." About Royal Mail Group Royal Mail Group plc is a public limited company wholly owned by the Government of the United Kingdom, with annual sales in excess of GBP 8 billion and more than 200,000 employees. Through our predecessors The Post Office Corporation, the General Post Office and Consignia, we have a record of over 360 years of providing the public with postal services postal service, arrangements made by a government for the transmission of letters, packages, and periodicals, and for related services. Early courier systems for government use were organized in the Persian Empire under Cyrus, in the Roman Empire, and in medieval . In the UK we operate under our trusted brands Royal Mail, Post Office(TM) and Parcelforce Worldwide. Through our trusted brands, we reach everybody every working day in mail, parcels and express services and Post Office branches. Today, we are reinventing our business to meet the changing needs of our customers and the demands of competition. Our goal is to be the world's leading postal service. About FreeMarkets FreeMarkets is the leader in providing companies with software, services, and information for Global Supply Management (GSM). FreeMarkets' GSM solutions help companies to lower costs, reduce risks, and increase profitability by improving their supply management processes and expanding the reach and capabilities of their supply management organizations. FreeMarkets can be found on the Web at www.freemarkets.com. Forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Statements in this press release that are not historical facts, including those statements that refer to FreeMarkets' plans, prospects, expectations, financial projections, strategies, intentions, and beliefs, are forward-looking statements. These forward-looking statements are based on information available to FreeMarkets today, and FreeMarkets assumes no obligation to update these statements as circumstances change. There are risks and uncertainties that could cause actual results to differ materially from the forward-looking statements, including, without limitation, market acceptance of FreeMarkets' products and services, the competitive nature of the market for GSM products and services, FreeMarkets' ability to predict its revenues and earnings, FreeMarkets' ability to develop competitive new products and services on a timely basis, introduction of new products and services by competitors, declining or uncertain economic and industry conditions, FreeMarkets' ability to attract and retain personnel and other risk factors that are described in more detail in FreeMarkets' most recent Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , and its other filings with the Securities and Exchange Commission. |
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