Hydro One Projects $5 Million in Year One Savings Using Ariba B2B Commerce Platform

IBM Implements One of the First Ariba Buyer 7.0 Solutions in Canada, Taking the Ontario Utility Live in Just 67 Days

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MARKHAM, Ontario & MOUNTAIN VIEW, Calif - 07 Mar 2001: Hydro One Inc. and Ariba Inc., (Nasdaq: ARBA) today announced the launch of a new online procurement system for Hydro One that is projected to save the Ontario energy company Cdn$5 million in its first full-year of operation. IBM Canada implemented the Ariba-powered system in just 67 days, making it one of the first Ariba® Buyer(tm) 7.0 business-to-business (B2B) eCommerce solutions deployed in Canada.

Phase one of the implementation connected 50 users at Hydro One with six of its suppliers. Once fully deployed, Hydro One estimates the new e-procurement system will expand to include 5,000 users and 300 suppliers, with an increase in savings of Cdn$10 to 12 million per year.

"We like the ease of use of Ariba Buyer, both for our internal buyers and for our suppliers," said Dan Olsen, Hydro One's Director of Supply Management Services. "In addition to reducing internal processing costs, the system enables us to guide end-users to qualified suppliers who offer us the most favorable terms and conditions."

Previously, 40 per cent of Hydro One's buying was from unapproved suppliers. Sourcing was done manually, involving over 3,500 vendors. The result was a time-consuming and cost-intensive process that diffused spending and offered few economies of scale.

Ariba Buyer enables Hydro One to electronically administer purchasing from each employee desktop and direct this spending to preferred suppliers and B2B eMarketplaces, resulting in significant time and cost savings.

"By increasing the efficiency of key business processes, Ariba's eCommerce solutions consistently deliver a bottom-line benefit to companies all over the world," said Nick Solinger, Vice-President, Product Marketing, Ariba. "Moreover, our relationship with IBM ensures that customers like Hydro One can get the Ariba eCommerce solution up and running quickly, allowing them to enjoy a rapid return on investment."

"The power of this eCommerce system is that it allows companies, like Hydro One, to better leverage the investments they're making," said Laurel Larcombe, Practice Manager, Business Intelligence and CRM Services, IBM Global Services Canada. "By focusing on internal capabilities and process change, Hydro One can also use the Ariba Buyer solution as an "on-ramp" to participate in global e-marketplaces and exchanges."

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