BMW Group has already Started to Introduce an E-Commerce Platform for Technical Purchasing

Munich. On 2 March 2000, the BMW Group signed an agreement with Ariba
Inc. for the use of the Ariba® B2B e-commerce platform for technical
purchasing. The intention is that installation of the Ariba platform in
the BMW Group in Germany should be completed by the 3rd quarter 2000.
After this, the system will be introduced throughout the entire BMW
Group. Ariba's global platform will allow the BMW Group to optimise its
business processes and incorporate suppliers throughout the world
seamlessly into the electronic procurement process. In addition to the
efficient procurement of catalogue goods and services, the Group is also
thinking of introducing calls to tender via the Internet and organising
auctions in collaboration with ARIBA® in the near future.
"Ariba was the first choice for the BMW Group", said Robert
Bauer, who is responsible for e-procurement in the BMW Group's technical
purchasing section. "Its seamlessly integrated global platform, its
functionality and performance, which have been tested in the market,
plus professional management were the crucial factors in our decision.
"With the global Ariba platform, we can streamline our processes
and thus clearly reduce costs in the process chain and in
purchasing", said Dr. Horst-Henning Wolf, Technical Purchasing
Manager for the BMW Group. The Ariba B2B e-commerce platform, with its
components Ariba ORMS B2B Procurement and Ariba Network Commerce
Services, offers a chance to make these savings, thus giving the BMW
Group a decisive competitive advantage. Ariba provides a B2B e-commerce
infrastructure that electronically coordinates the procurement measures
of individual employees in the company and forwards orders via Ariba
Network Services directly to BMW Group suppliers. Ariba's ORMS B2B
Procurement, based on Intranet technology, gives direct access to Ariba
Network Commerce Services, which saves both time and money. Ariba
Network Services provide a central connection with suppliers and support
efficient forms of business, such as auctions, calls to tender,
electronic payments and all sorts of transaction services. Integration
specialists KPMG will be supporting the BMW Group in introducing the
system. "The BMW Group is thus taking on a pioneering role in the
automobile industry in the field of MRO goods (maintenance, repair and
operation)", says John McMahon, Senior Vice President of Worldwide
Operations at Ariba. "We are pleased to support the BMW Group in
reducing costs and increasing efficiency".