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Avnet Deploys On Demand Service From Ketera Technologies and IBM

Industry Leader Expects Rapid Savings From Procurement and Spend Management Service

WHITE PLAINS, NY & MOUNTAIN VIEW, CA - 27 Jan 2004: IBM and Ketera Technologies today announced that Avnet, Inc., one of the world's largest technology marketing, distribution and services companies, has begun deployment of a service from Ketera Technologies and IBM that will transform the company's sourcing, procurement and spend management processes and provide rapid savings to the company.

The joint solution for Avnet combines the strategic sourcing expertise and services of IBM, with spend management applications and services delivered "on demand" by Ketera Technologies. "We see tremendous value in the service offered by IBM and Ketera," said Phil Wehrli, Director of Procurement Services at Avnet. "The 'On Demand' service model allows us to avoid implementation headaches -- and realize these savings and benefits almost immediately."

Avnet is using IBM Leveraged Procurement Services to achieve savings by establishing new or improved contracts with suppliers across multiple categories of spending. IBM sourcing specialists are helping Avnet to negotiate and select strategic suppliers for non-inventory goods and services from standard office products to maintenance repair and operational supplies.

"Companies like Avnet are turning to IBM Leveraged Procurement Services because they are able to realize average savings of up to 10 to 30 percent annually," said John Sharman, Global Procurement Lead, IBM Business Consulting Services. "These companies are looking to get the best-possible deal from their preferred supplier base, and leverage IBM expertise in different spend categories."

Ketera's on-demand Spend Management service enables Avnet to realize savings on an ongoing basis. Ketera's e-Procurement service enables Avnet to control end-user access to preferred suppliers and contracted prices. Ketera is also responsible for enabling suppliers on Avnet's behalf -- ensuring that suppliers can receive transactions and ensuring that supplier catalog data is made available to Avnet's users.

The first phase of the solution has been deployed to buy goods and services from more than 10 contracted suppliers. The solution will be rolled out across North America by the end of the year.

"There has been a clear shift in the market toward 'on demand' solutions which provide rapid time to value," said Stephen Savignano, Chief Executive Officer of Ketera Technologies. "Avnet wanted a solution that paid for itself from the start and our 'on demand' delivery and pricing model was the only solution that could meet this requirement."

Contact(s) information

Greg Thompson
IBM Media Relations
(404) 238-5052
gregoryt@us.ibm.com

Brian Desmond
Ketera Technologies
(650) 903-5666
bdesmond@ketera.com

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