Library : Success Stories : Eddie Bauer Fulfillment Services

Challenge:

Eddie Bauer Fulfillment Services, Inc. (EBFS), which services purchasing for The Spiegel Group, wanted to simplify and automate selected portions of their procurement process and optimize purchasing negotiations to obtain cost savings. EBFS decided that to reach this goal, it needed a program that would support e-negotiation and have extensive automatic competitive bidding capabilities. In order to find the best solution, EBFS completed a thorough investigation of e-procurement providers and their respective offerings.

Solution:

With Sourcing, Epiq implemented a procurement system that suppliers can access to review RFQ's, make offers, or participate in competitive bidding events. This procurement system has helped the company achieve cost savings as well as simplify, automate, and enhance business processes.

Benefits:

The company has realized numerous benefits from this new procurement system. The process of requesting quotes and negotiating prices has been automated and streamlined. Also, the company has achieved a high return on its investment by reducing process costs and lowering purchase prices. The system has a low total cost of ownership because it is web-based and fully featured. The web-based system is cost effective because there is no need to install and maintain client programs. The full feature set and a "best-of-breed" program type provide exceptional value for the company.

Story:

The Spiegel Group is a leading international specialty retailer marketing fashionable apparel and home furnishings to customers through catalogs, specialty retail and outlet stores, and e-commerce sites. Eddie Bauer Fulfillment Services, Inc. (EBFS) provides merchandise fulfillment and distribution needs as well as purchasing services for The Spiegel Group. EBFS selected Epiq's Sourcing product to improve and automate its procurement process. Dean Bailey, purchasing project manager at EBFS and e-procurement adopter, investigated and evaluated several products using a rigorous screening process. Bailey recalls the experience, "After researching and analyzing different e-procurement solution providers, we decided that Epiq's product could best meet our needs. Later, when I visited Epiq's headquarters and met my account team for a week of training, my confidence in Epiq was confirmed by observing technical excellence, professionalism, and a dedication to us as a valued customer".

Once the system was in place, the company quickly realized time-saving benefits since purchasing agents could now automate and accelerate the distribution of requirements and negotiation. Procurement tasks were streamlined and simplified. "As a new initiative, we were understandably nervous about our first live reverse auction event. After it was all over, we realized that we had nothing to worry about. Epiq's support was there for us and the first auction event went off technically without a hitch" - Bailey

In addition to the process improvements, the company realized a high return on investment. It used Epiq's solution to increase vendor participation and realize significant cost savings. Epiq's real time, automated, competitive bidding process lowered purchase prices and helped EBFS realize cost savings. These early cost savings have already exceeded the investment EBFS made in the system. "After the fourth auction event the software paid for itself several times over in cost savings. If that's not great ROI, I don't know what is." - Bailey

EBFS expects to continue to receive benefits from Epiq's software. The total cost of ownership is low and the software was installed quickly. Buyers and suppliers can access the software with a Web browser, eliminating the need for client application installs and costly maintenance. The program delivers utility with its full feature set, comprehensive scope, and powerful tools. Dean Bailey, who has used the program extensively, explains, "The software has a powerful set of tools that enable us to establish a unique set of business rules for each event. For each type of purchase or supplier, we've discovered an optimal mix of settings for proxy bidding, auto-extension, and non-price factor adjustments". In addition to a comprehensive set of tools, Bailey is glad that the program takes advantage of "best-of-breed" technologies and implementation, "For the long term, it's reassuring to know that the software is built on a proven Enterprise Java platform and is hosted with Solaris and Oracle".

In addition to the direct benefits realized by EBFS its suppliers benefit as well, having the capability to use self-service tools and accelerate negotiations. Suppliers have access to the information they want, when they want it, without making calls or sending emails. The software improves these important relationships as suppliers appreciate the power to perform self-service tasks, gather information, and work efficiently with EBFS. Bailey summarizes the impact of the benefits, "The software works just beautifully. Epiq doesn't just talk about benefits that you may or may not receive, they actually deliver value and results".