Goodyear is focused on building momentum and maintaining profitable growth by driving improvements and efficiencies in key operational areas. The world's leading tire manufacturer identified indirect procurement as a major element of the company's current cost reduction effort. Following a highly competitive evaluation process, Goodyear selected ICG Commerce as the specialist to support this effort in North America based upon the procurement services provider's operational approach, customized and flexible solutions, as well as its deep expertise.
"Partnering with ICG Commerce on our indirect procurement exemplifies our focus on driving a low cost structure, one of the seven key drivers contributing to our improved company performance," said Jonathan Rich, president of Goodyear's North American Tire business unit.
Goodyear's corporate sourcing team has already established significant savings opportunities through their ongoing strategic sourcing efforts. ICG Commerce's role is to ensure that the savings opportunities born from these efforts are fully realized, to identify and implement additional savings opportunities in indirect buying categories, and to drive year-over-year cost improvements.
To achieve that objective, Goodyear will leverage ICG Commerce's comprehensive procurement infrastructure consisting of category experts and process specialists, a best practice based Buying Center, and flexible tools and information to manage a broad spectrum of procurement processes including strategic sourcing, savings implementation, transaction processing, and ongoing category management. ICG Commerce will provide a comprehensive suite of services to not only help drive aggressive cost reductions in North America but also support and accelerate the utilization of the company's ARIBA e-procurement system.
"The combined efforts of our two teams of professionals will bring our procurement capabilities to a new level of performance," said Gary Miller, Goodyear vice president and chief procurement officer. "Our company has made good strides in identifying opportunities for savings and putting a platform in place to enable improved focus and line-of-sight alignment as well as to drive compliance through effective purchasing. ICG Commerce provides the in-depth category, process and operational expertise we need to make sure the savings are realized and continuously improved upon and the platform is fully utilized."
The ICG Commerce team will work as an integrated element of the existing indirect procurement organization, serving all of Goodyear's North American Tire and Engineered Products plant facilities at more than 40 locations. The program will focus on buying categories that fall into groupings such as transportation and distribution, packaging, energy, MRO supplies, marketing products and services, and professional services.
"Goodyear understands that procurement is a high-impact initiative that can significantly enhance company performance as well as its bottom line," said Edward H. West, chairman and CEO of ICG Commerce. "Our agreement is testament to the commitment Goodyear has made to truly maximize the value of procurement to reap savings opportunities. ICG Commerce looks forward to partnering with Goodyear to achieve its objectives."