ICG Commerce Builds Momentum in First Quarter of 2002 by Delivering Measurable Savings in Less Time
An Expanded Sourcing Solution, Record Rollout of RealExchange(SM) and Increased Adoption Were Keys to Success in First Three Months
PHILADELPHIA - Wednesday, May 01, 2002 - ICG Commerce, a leading Procurement Services Provider, announced today
key business results in the quarter ended March 31, 2002. With an expanded eSourcing platform, ICG Commerce was able to
help its customers negotiate double-digit percentage cost savings and better service with suppliers. ICG Commerce
continued to hone its RealExchange implementation process allowing the company to deliver tangible savings to customers
in less than 10 weeks. The company implemented 15 new customers on RealExchange in the first quarter of 2002. In
addition, ICG Commerce increased usage of RealExchange among its current customers by 15 percent.
ICG Commerce's Enabled Sourcing offering accelerates the strategic sourcing of goods and services by providing a
flexible solution, which combines a comprehensive eSourcing platform with sourcing expertise and best practices for
maximum results. The recent expansion of the Enabled Sourcing solution has helped companies like Nordstrom Inc.,
Accenture and Delta Air Lines source suppliers for optimal pricing and service agreements.
Significant customer acquisition in late 2001 led to a rapid deployment of ICG Commerce's Managed e-Procurement
platform, RealExchange, in the first three months of 2002. RealExchange provides access to pre-negotiated savings
through preferred supplier catalogs and streamlines the entire purchasing process. To date, RealExchange has processed
more than 1.6 million transactions since its launch 2 years ago. In the first three months of 2002, customers such as
Levi Strauss & Co., Bethlehem Steel, Triumph Group and Sun Chemical went live with more than 3000 users on
RealExchange and began to realize savings of 5 to 15 percent in 8 to 10 weeks. Currently, 91 companies buy goods and
services through the exchange.
ICG Commerce also continued its track record of expanding work with its existing customers and reported a 15 percent
increase in usage of RealExchange. The higher compliance rate is attributed to ICG Commerce's ability to overcome
the two most common e-procurement implementation barriers - supplier enablement and user adoption. ICG
Commerce's rigorous supplier enablement approach both connects buyers and suppliers electronically and ensures
suppliers are ready to meet operational and service requirements. To date, ICG Commerce has enabled 92 suppliers and
has approximately 3 million SKUs of product content available online. A total of 16 new suppliers were enabled in the
first quarter of 2002. ICG Commerce also leads a proven change management program, which includes
communications and training to ensure user compliance.
"Our ability to deliver measurable, hard-dollar savings while continuously improving our solutions has helped us attract
many new customers in the first quarter including Ahold USA Inc., Ohio State University, and RubberNetwork," said
Bill Toler, president of North American Operations for ICG Commerce. "ICG Commerce continues to grow in a
sluggish market because of its unique ability to actually save companies significant money in a short period of time."
About ICG Commerce, Inc.
ICG Commerce (www.icgcommerce.com) is the leading Procurement Service Provider for Global 2000 companies.
Leveraging its wealth of purchasing and sourcing expertise and flexible technology, ICG Commerce delivers tailored
services for the procurement of direct and indirect goods. The company is uniquely positioned to deliver substantial
hard-dollar procurement savings. ICG Commerce Inc., a privately held company founded in 1992, is a member of
Internet Capital Group's (Nasdaq: ICGE) network of partner companies.
|
