000203 Hormel Selects Oracle to Beef Up E-BusinessFebruary 6, 2000Redwood Shores, CA - Oracle Corp. the number one choice for e- business, announced that Hormel Foods, a multinational manufacturer and marketer of consumer-branded meat and food products with revenues of $3.4 billion, has selected Oracle® Internet Procurement, part of Oracle's e-business suite, to streamline and support its procurement functions for both production and non-production goods and services. Hormel Foods expects to achieve numerous cost benefits and operational efficiencies by implementing Oracle's popular e-business procurement suite. Currently, Hormel Foods uses a homegrown system which relies on paper-based processes to purchase non-production goods and services such as office supplies, computers, furniture, industrial supplies and maintenance, repair and operations (MRO). In an effort to reduce procurement and transaction processing cycle times and costs, Hormel Foods conducted a selection process and subsequently chose Oracle Internet Procurement for its leadership in the e-business and Internet marketplace. Hormel Foods plans to replace its legacy systems and roll out the new Oracle system company-wide in July, 2000. Oracle Consulting will provide Hormel Foods with a full range of support services designed to get the system up and running quickly. “Our goal is to apply e-commerce aggressively to improve our operations,” said Dan Darveaux, director of Information Systems at Hormel. “We feel very strongly that Oracle will help us to achieve our goal by putting our purchasing processes into a streamlined, Internet- based system, which will allow us to cut costs, improve margins and ultimately gain a competitive edge in our industry.” Hormel Foods will take advantage of the self-service capabilities of Oracle Internet Procurement to eliminate redundancies and manual processes. Hormel employees at more than 50 locations will use a simple Web browser to enter and automatically route requisitions in the system, as well as to track and access information on a real time basis. Employees will also be able to quickly and easily search for goods and services via online catalogs. In addition, Oracle's exclusive Purchasing Intelligence system will allow Hormel Foods' procurement professionals to analyze trends, organizational spending and supplier performance, to create, manage and leverage supplier contracts more effectively. By using Oracle's Internet Procurement suite to provide compliance across the company with pre- negotiated contract pricing and supplier agreements, Hormel Foods expects to eliminate maverick buying and contract leakage, which will result in additional savings to the bottom line. “Hormel expects to experience significant savings with Oracle Internet Procurement,” said Ron Wohl, executive vice president, Oracle Applications Division. “With a Web browser on the desktop, Hormel procurement professionals will be able to see the price, quality and delivery information for all company purchases across all locations in one place, enabling them to negotiate supplier contracts with substantial cost savings.”
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