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PITTSBURGH - Giant Eagle, Inc. has expanded its spend management (SM) strategy and is moving forward by investing in the combined solutions from Sunnyvale, Calif.-based Ariba, Inc., the leading SM solutions provider, and the former FreeMarkets after the two companies' recent merger.
Giant Eagle, with 224 locations in four states, is working with Ariba to help identify cost savings opportunities within its supply chain that can be reinvested into the customer value equation. As a result the retailer is launching a significant spend visibility initiative focused on tracking $500 million in annual purchasing cost that is currently aggregated across almost every division within the company. Giant Eagle will leverage Ariba solutions to identify costs savings opportunities on indirect materials, and the company will start branching out to other category-specific areas of spend within its organization.
Giant Eagle, already a longtime FreeMarkets sourcing customer, has now selected a hosted version of Ariba Analysis with enrichment and classification of spend data capabilities, to obtain greater spend visibility within its organization. Also, Giant Eagle has joined with the Ariba Solutions Delivery team to leverage its increased visibility to define category-specific strategies for managing spend through the entire SM lifecycle.
"Giant Eagle is focused on streamlining our supply chain costs to continually deliver better value to our customers," said Giant Eagle s.v.p. and c.i.o. Russ Ross. "After many years of success with FreeMarkets' sourcing technology and services to automate our sourcing process, we added Ariba's solution for spend analysis to provide us with greater transparency into our expense transactions and enhance our leadership in this area. We are pleased that these solutions are now offered by a single provider with whom we can work to accelerate our bottom-line results."
"Giant Eagle recognizes the importance of spend visibility, having already realized significant savings in this area," said Ariba c.m.o. Michael Schmitt. "We are excited to work with Giant Eagle on this strategic initiative to accelerate sustainable savings across the enterprise."