Sonoco Purchasing Finds Success With Ariba ORMS

HARTSVILLE, S.C., Feb. 22 /PRNewswire/ -- Sonoco (NYSE: SON), a leading global manufacturer of packaging materials for industrial and consumer markets, announced today that it continues to expand the utilization of Ariba (Nasdaq: ARBA) Operating Resource Management System (Ariba ORMS(TM)) within the company.

The Ariba solution is a major component of Sonoco's efforts to centralize its global purchasing and to realize the resulting leverage in buying power. Prior to using the Ariba solution, Sonoco was using the traditional, more time consuming, paper-based process with limited product visibility for acquiring operating resources.

"One of Sonoco's four primary drivers of growth is productivity enhancement," said Peter C. Browning, president and chief executive officer. "The Ariba System improves the visibility and control of our spending at the point of purchase and enables our suppliers to better meet our requirements," said Browning.

Sonoco has more than doubled the number of users since the initial installation in April 1999. The company has implemented catalogs for the purchases of items such as MRO, office supplies, safety supplies, secondary packaging supplies, janitorial supplies and copiers. The company has also included some catalogs for products that are supplied internally between divisions. The goal is to include additional catalogs as needed and ultimately have minimal orders made outside of the catalogs. "The synergies and efficiencies will be achieved as we evolve to a true centralization of purchasing," said Browning.

Sonoco will have the Ariba system fully implemented across the United States at more than 100 manufacturing facilities by the end of the year. This will add approximately 1,500 users to the system. Sonoco spends around $400 million globally on operating resources. While the Ariba solution will help leverage and better control this spending, additional benefits are expected from streamlining the purchasing process and integrating the data into the accounts payable and general ledger system. With the initial implementation phase completed, Sonoco expects a successful full rollout in the United States this year and to begin implementation in Canada and Europe in 2001.

Sonoco, founded in 1899, is a $2.5 billion manufacturer of industrial and consumer packaging products with over 285 operations in 33 countries serving customers in some 85 nations.
SOURCE Sonoco
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CONTACT: Allan V. Cecil, Vice President of Sonoco, 843-383-7524, or allan.cecil@sonoco.com