LAS VEGAS, May, 2001 -- To address increasing demand for e-sourcing--applications and services delivered over the Internet--IBM today announced Leveraged Procurement Services (LPS), a suite of procurement services delivered on Ariba's B2B commerce technology platform. Available in June through IBM Global Services, LPS will help businesses rein in maverick spending and save time on customized supplier enablement. Leveraging IBM's sourcing expertise and supplier relationships, LPS will provide companies with IBM-customized catalogs and pricing for indirect goods and services, as well as Ariba's purchase requisition and reporting capabilities. Goods and services range from basic office supplies, office furniture and equipment to industrial MRO materials and contract labor services. LPS also offers custom acquisition services--for anything from security services to capital equipment--to meet customer-specific or one-time purchasing needs. To further automate and manage corporate sourcing, buying and internal processes, customers will access the services through either the Web-based Ariba Marketplace Network Edition or Ariba Buyer client software. "The bundling of IBM's sourcing expertise and Ariba's e-procurement systems creates real business value for a broad range of companies," said William Schaefer, vice president of Procurement Services, IBM. "With minimal implementation or investment, LPS customers will be able to optimize and streamline a significant portion of their spend through industry-leading suppliers. LPS addresses an important need to accelerate the achievement of real returns in procurement -- a key concern in the current economic environment." IBM saved $377 million last year through efficiencies gained from e-procurement, compared to $272 million in 1999. Today, IBM purchases 94 percent of its goods and services electronically through 24,000 suppliers worldwide. Initial LPS suppliers include: AFFLINK, American Identity, Bruckner Supply, Carlson Wagonlit Travel, CDI Corporation, Cirqit, En Pointe Technologies, Lanier Worldwide, LCD Express, Manpower, SHI, Staples National Advantage and Teknion. Pricing for LPS is subscription and transaction-based, with fees based on a customer's overall spend. The suite of services will be offered through IBM, Ariba and select business partners in the United States. "This offering is a great example of how Ariba and IBM can team to deliver comprehensive procurement solutions," said Steve Turner, vice president and general manager, Procurement Solutions, Ariba. "LPS is primed to help companies achieve rapid return on investment using Ariba's procurement solutions with ready-to-go workflow and requisition tools and IBM's sourcing, catalog enablement and supplier management expertise." The Web-enabled service, offered through the Ariba Commerce Services Network, does not require the purchase of additional infrastructure. Ariba Buyer is offered through the IBM e-marketplace hosting service for Ariba Buyer, external application service providers and custom Ariba Buyer deployments.