HACKETTSTOWN, N.J., April 17, 2001 (PRIMEZONE) -- TerraMotus.com Corporation, a leading provider of dynamic pricing procurement services on the Internet, today announced that it has conducted another successful steel pipe auction, this time for NorthWestern Public Service (NorthWestern ) utilizing its TerraWare proprietary platform.
During the event, seven steel mills and distributors competed for a $100,000-plus contract to provide in excess of 140 tons of steel, representing approximately 6 miles of steel pipe, for a new segment of NorthWestern's gas distribution system. The online bidding process increased competition for the steel pipe contract and reduced NorthWestern's negotiating time, with more than 30 bids received in approximately 40 minutes. At the conclusion of the auction, the unit prices for the lowest three bidders were within 0.7% of each other, even though the Suppliers could not see their competitors' bids.
"We are extremely pleased with the overall auction results," commented Donald E. Howell, Vice President, TerraMotus(SM). "Current market prices were achieved as indicated by the convergence of the unit prices. We are able to consistently achieve market prices through a combination of strategic sourcing, tight specifications and our electronic bidding process.
"We have successfully completed numerous pipe and related commodity and service auctions for the utility industry and we are regularly achieving savings in the 8 to 15% percent range," Howell stated. "Our firm is currently working with our other utility clients to identify potential purchase aggregation opportunities, which will yield even greater cost saving for all the participating buyers."
About TerraMotus(SM)
TerraMotus(SM) is a leading provider of dynamic pricing procurement solutions. TerraMotus(SM) combines its proprietary TerraWare platform with superior sourcing information and supreme customer service to deliver significant savings to clients. TerraMotus(SM) has conducted approximately 100 online auctions for more than $250 million worth of goods and services to date, resulting in savings in excess of $30 million for its clients. TerraMotus(SM) maintains approximately $1.5 billion in backlogged auctions, conducted for U.S.-based clients ranging from Fortune 100 firms to mid-sized manufacturing companies and commercial property developers.
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CONTACT: TerraMotus.com Corp., Hackettstown
Donald E. Howell, Vice President
(908) 850-9030 ext. 201
dhowell@terramotus.com
www.terramotus.com