Tata Motors Extends Sourcing Alliance With Ariba

by CXOtoday Staff    Jun 07, 2005

Ariba Inc., a provider of spend management solutions has extended its sourcing solutions partnership with Tata Motors, one of India’s largest automobile manufacturers. Under this new agreement, Tata Motors has extended its commitment to Ariba Sourcing Services and Ariba QuickSource.

Tata Motors has been using Ariba Spend Management solutions for the last four years. During this period, it has achieved significant bottom line savings, which are expected to drive additional cost reductions.

Given the competitive nature of the automobile marketplace, managing spend effectively has been a key business priority for Tata Motors. The Ariba Spend Management platform has delivered rapid results in helping the company introduce new suppliers, rationalize its supply base and run on-line markets.

This has led to significant savings and development of an effective supply chain. This new agreement reflects a rapidly growing move by many industry leaders, including the automotive industry, to use Spend Management as a key element in their strategic plans.

“We are pleased with the results from the deployment of Ariba Spend Management solutions,” said Ravi Kant, executive director, commercial vehicle business unit, Tata Motors.

“We plan to implement a two-pronged sourcing strategy using Sourcing Services to manage complex spend, and leveraging Ariba QuickSource to ensure savings and adopt best practices amongst the buying organization.” added Mr. Ravi Kant, Executive Director, Commercial Vehicle Business Unit, Tata Motors.

Ariba will continue to provide Tata Motors with sourcing and commodity knowledge along with technology advantages across multiple spend categories. According to the company, Ariba Spend Management has also been an important part of Tata Motors’ operations to automate, streamline, and provide transparency into the sourcing process.

According to Arun Kharbanda, group director, Ariba, “Tata Motors is a good example of the sustainable savings and cost controls generated when a company is serious about Spend Management.”

“With rising input costs and a competitive marketplace, managing ’spend’ and improving efficiency have been the key drivers for Ariba customers. Overall, we have seen a growing trend toward using spend management as a strategic resource to drive more efficient cost controls and to deliver positive bottom-line results,” added Kharbanda.

Tags: spend