DETROIT, February 10, 2009 – SDE Vendor Managed Solutions, Inc. (SDE), a Michigan-based provider of integrated MRO and vendor management services, has been awarded three contracts that apply the company’s industry-leading procurement and management programs across multiple industries.
SDE’s new business with ExxonMobil, Bank of America and Hitchiner Manufacturing results in revenue growth of 20 percent and increases its buying power to $750 million. The company expects to hire materials management procurement professionals over the next several months to support the new business.
“We have worked very hard to develop and implement our client-driven model for the auto industry, and now it’s rewarding to see that model really take off across other industries,” said Rumia Ambrose-Burbank, president of SDE Vendor Managed Solutions, Inc. “With our expert services and automated technology, we can help companies streamline their purchasing programs and save money throughout the supply chain.
“The value that we bring to clients is our vendor-agnostic approach to sourcing, inventory management and volume purchasing with our suppliers, which allow us to focus on getting our clients the best price for their MRO needs,” said Ambrose-Burbank.
SDE was awarded a five-year contact with ExxonMobil (NYSE:XOM), the world’s largest publicly traded international oil and gas company, to serve as the purchasing agent for the company’s spot buys, including all non-production items without a repeat purchasing history. The contract started one year ago as a pilot program at a single refinery. Currently, SDE manages spot buys for multiple locations and manages a budget of nearly $500 million. This business is expected to grow as Exxon advances the SDE model throughout its global refineries and chemical plants.
“SDE has outperformed expectations allowing Exxon to recognize savings greater than we anticipated,” said Steven Pierre, ExxonMobil Turnaround Executive.
“This model works for Exxon because it’s completely transparent,” said Ambrose-Burbank. “SDE manages the procurement process, but we are not a distributor. In fact, we’re vendor agnostic. We do not make a commission, so we are not motivated to recommend certain suppliers over others. This helps us deliver high quality non-production goods to our clients, and at the most competitive prices.”
SDE has been awarded a three-year contract with Hitchiner Manufacturing, a global manufacturer of castings and casting-based assemblies for automotive and aerospace industries. Hitchiner has hired SDE to apply its integrated MRO solution which includes strategic sourcing, inventory and material management, procurement and operations oversight and logistics management.
SDE works with Hitchiner’s internal purchasing team to manage all aspects of the supply chain, from the requisition process to the actual use of the material. SDE has located four employees on site to handle goods received. SDE’s integrated services, combined with its automated inventory control system, will help Hitchiner achieve its lean manufacturing initiatives.
“This integrated approach to MRO procurement, combined with our automated inventory control system, helps Hitchiner achieve its lean manufacturing initiatives,” said Ambrose-Burbank. “We are the largest independent integrator in the U.S., and our expertise throughout the supply chain helps companies improve efficiencies, save money and apply critical internal resources to more value-added operations.”
Bank of America
SDE has been awarded a national three-year contract with Bank of America and its facility partners to provide lighting, general MRO products and tools to service its 4,000 branches. SDE will be working with Bank of America to reduce costs across these categories and will provide standardization and environmentally-friendly solutions to all of Bank of America’s facilities.
About SDE Vendor Managed Solutions, Inc.
SDE Vendor Managed Solutions Inc. is a minority-owned and operated custom services integrator of procurement, materials management and logistics. For the past ten years, SDE has served customers in the automotive, financial services, manufacturing, petrochemical, construction and education industries, among others. SDE Vendor Managed Solutions is headquartered in Troy, Mich.