USA: Trucking Giant to Conduct Purchasing Through Online Auctions

By Press Release | 23 August 2000

Mainstay truck manufacturer Mack Trucks, Inc. announced today that it has initiated a pilot action program with online procurement specialist ICG Commerce to utilize real-time, online bidding auctions to drive material savings. Under terms of the agreement, ICG Commerce will conduct several online auctions for approximately $15 million of direct materials used in Mack's manufacturing and assembly operations.

ICG Commerce's RealAuction(SM) combines the strategic sourcing and supplier management experience of the company's auction team and powerful,integrated software to enable ICG Commerce's customers and suppliers to participate in real-time bidding through dynamic, interactive, online auctions.

Working with Mack's procurement professionals, ICG Commerce strategic sourcing experts will define an auction strategy and identify, screen and train potential suppliers. ICG Commerce will host the auctions in which the selected suppliers will bid on projects for Mack. With the support of ICG Commerce's auction team, Mack's representatives will watch in real-time price movement, analyze bid activity and savings potential, and forward messages to suppliers for instantaneous feedback.

According to Rick Berry, president and CEO of ICG Commerce, the online auctions will dramatically shorten the bid/negotiation process and provide Mack with significant cost savings. "In a market as competitive as the heavy truck industry, reducing costs is a primary way to increase margins," said Rick Berry. "Our experienced auctioning professionals know the industry and will work with Mack's outstanding purchasing organization to find the most effective ways to maximize results."

"ICG Commerce's RealAuction is an exciting complement to our e-commerce capabilities that will enable us to increase productivity, reduce costs, reduce procurement cycle time, and maintain high quality standards by working with pre-qualified suppliers," said Bruno Linsolas, executive vice president of purchasing for Mack Trucks. "ICG Commerce has a tremendous combination of experience and technology, and we look forward to seeing great results."

About Mack Trucks, Inc.

Dedicated to quality, reliability, and total customer satisfaction, Mack Trucks, Inc. has provided innovative, forward-thinking products and services to its customers worldwide for a century. Part of the global Renault V.I./Mack Group, Mack is one of North America's largest producers of heavy-duty trucks, in addition to major product components; the company also markets a line of medium-duty diesel trucks across North America. Through the MackPower(TM) business unit, Mack manufactures, markets and supports a line of diesel engines for commercial, industrial and marine applications. MACK vehicles are sold and serviced in more than 45 countries worldwide.

About ICG Commerce

ICG Commerce is the world's first comprehensive online procurement services provider for businesses. Leveraging its wealth of supply chain management, purchasing and strategic sourcing expertise across multiple industry groups, ICG Commerce delivers comprehensive, tailored services built around a flexible, Internet-based platform that requires minimal start-up cost and time and no software purchase or installation.

ICG Commerce can effect the entire spectrum of purchasing strategies, including aggregated buys, portals and exchanges, hosted auctions, eRFQs/eRFPs, spot buys and catalog purchases. The company is uniquely positioned to help customers streamline all of their procurement decisions and processes and to effect substantial savings and efficiencies. ICG Commerce is a member of the Internet Capital Group (Nasdaq: ICGE) network of partner companies, and is based in Jenkintown, Pa. For more information, access the company's Web site at www.icgcommerce.com