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2010 Vision Award for Business Impact

Category: Enterprise Data Warehouse
Goodyear Tire submitted by Teradata

Business Drivers: Goodyear's procurement department lacked timely visibility into enterprise indirect spend data. As a result, it was unable to negotiate effectively, achieve volume leverage, identify areas of sourcing opportunities and identify related vendors. To obtain this visibility, a spend analytic reporting environment was created to encompass both global and regional reporting requirements using existing enterprise data warehouse architecture.

Benefits: The enterprise data warehouse is the centralized data repository and reporting environment for enterprise-wide purchasing and accounting data, and includes indirect and direct spend data. The primary benefit is the ability to support strategic sourcing at the global level, something few companies can do. The solution is delivering significant tangible benefits. Four category sourcing initiatives are in the early stages and are estimated to have savings for $3.5-$5.5 million. One initiative to analyze and adjust global payment terms for direct material purchases has realized a cash flow benefit of $1 million.

Business Impact: Goodyear now has timely visibility to enterprise spend data, consistent spend classifications, a global definition of spend and vendor hierarchy, and a standard retention process for historical data. Procurement can now negotiate more effectively, achieve volume leverage, identify areas of sourcing opportunities and identify related vendors. This environment further serves procurement by allowing them to produce year-over-year historical spend comparisons and trend analysis, which cannot easily be obtained through the ERP systems. Because of the tremendous scope of the solution, Goodyear continues to identify and develop strategies around categories of spend that were previously untapped.

Judge's Comment: "This holistic enterprise data warehouse technical solution was impressive as far as scope: global purchasing and accounting data, master data implementation and measurable payback." Michael Jennings, Industry Analyst