Headquarters: 1600 Technology Way, Latrobe, PA 15650

Phone: (724) 539-5000

Business: Manufacturer of tools for metal cutting, mining and road construction

Chief Information Officer: Ralph Niederst

Financials in 2002: $1.6 billion in sales; $212 million net loss; $119 million operating profit

Challenge: Identify every dollar that leaves the company, then cut spending by enforcing corporate procurement policies at its 50 factories worldwide

BASELINE GOALS:

• Cut $35 million from $700 million in managed procurement costs by May 2003
• Reduce the number of suppliers to 2,000 by 2005, from 8,000 three years ago
• Get employees to comply with preferred-supplier contracts for 80% to 85% of all purchases by 2005, up from less than 40% in 2000