May 2, 2005

Verticalnet announces that Cargill is leveraging Verticalnet's Advanced B2B Sourcing solution to drive transportation sourcing initiatives across the United States and Europe.

With the support of Verticalnet's on-demand software and consulting services, Cargill has already completed a sourcing project for bulk liquid transportation in Europe and is in the process of sourcing dry van shipments in the United States.

Cargill, the largest privately held company in the United States, selected Verticalnet over other software providers because of the deep transportation expertise built into the Verticalnet Advanced Sourcing Solution and the proven expertise of Verticalnet in supporting sourcing initiatives across both North America and Europe.

The market for transportation is characterized by rising costs due to fuel price increases and constrained capacity across all modes, necessitating that companies look beyond traditional, price-focused reverse auctions for transportation.

The Verticalnet solution has already proven itself in Europe, where a recent sourcing event across 6 countries and 75 suppliers yielded a transportation network with a best-fit match between supplier capabilities and Cargill's pan-European requirements, while delivering 6% annualized savings in a market where most shippers are facing price increases.

For the first time, Cargill was able to provide a single face to carriers across divisions, providing qualified carriers with the chance to increase their volume of business with Cargill in a way that yields benefits for both parties.

Cargill also chose Verticalnet for their solution's unique ability to elevate the focus beyond supplier consolidation and price-only leverage, to help Cargill create a transportation network with the best fit between Cargill's needs and supplier capabilities.

With the Verticalnet solution, Cargill expects to see improved carrier performance while controlling costs as they uncover previously untapped economies that will both save Cargill money and provide a more attractive award package for carriers.

The new transport management model will create a higher distinctive value for Cargill's internal and external stakeholders while harmonizing quality standards and leveraging best practices across the chain.

"With rising fuel prices, capacity constraints, and varying capabilities across the supply base, transportation is an incredibly difficult category to source," said Jeffrey P. Ryan, Verticalnet's SVP of Advanced Sourcing.

"Industry leaders like Cargill are turning to more advanced solutions, like Verticalnet, to control costs while building strong and reliable carrier relationships. We are excited about the project's success in Europe, and look forward to continuing to support their supply management initiatives."

Source: Verticalnet