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IBM Helps Nonprofit With Procurement Outsourcing

Nonprofit Aggregates Spend for Other Nonprofits to Reduce Millions in Material Costs

ATLANTA, GA - 21 Feb 2006: The Georgia Center for Nonprofits (GCN), an all-in-one resource for Georgia's nonprofit sector, today announced that it has been working with IBM Business Consulting Services to build a procurement shared services platform for collaborative sourcing to improve procurement operations across 1,400 local nonprofit groups. Under the contract, IBM Business Consulting Services will use its Express Spend Management Solution to manage the day-to-day procurement and compliance operations, including spot buys and technical support for more than $19 billion in spending power.

Launched this week, IBM's Express Spend Management Solution will leverage GCN's member spending to generate, on average, 10 percent in material cost savings across key indirect spending categories, ranging from office supplies to shipping services. GCN will leverage IBM's strategic sourcing and procurement outsourcing capabilities, and a shared on demand requisition-to-pay platform from Perfect Commerce, an IBM Business Partner. Member companies will have access to self-service requisitioning, approval routing, payment, and compliance reporting capabilities, which will be vital to monitoring and ensuring compliance with supply contracts.

"IBM's internal procurement team manages $40 billion in spend annually, and I knew if they could do it for themselves, they could also help us," commented Karen Beavor, CEO, Georgia Center for Nonprofits. "The outsourced model provided the affordability we needed along with the scalability for both our small and large members."

The Woodruff Arts Center in Atlanta was part of the pilot program and expects to save $1 million by the time the program is fully implemented. "The cost savings that this model generates can be used to fund programs such as performances, exhibitions, and Pre-K through 12 educational programs," said Shelton G. Stanfill, President and CEO of the Woodruff Arts Center.

The IBM Express Spend Management Solution was designed specifically for mid market companies and is appropriate for companies in any industry -- nonprofit or for profit.

Contact(s) information

Chris Sciacca
IBM Media Relations
(212) 745-4732
csciacca@us.ibm.com

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