Issue: Apr 2006


Diversified Machine, Inc. Partners with DSSI for Indirect Procurement Services



by John Larkin

DSSI announced a multi- year agreement to provide purchasing services to Diversified Machine, Inc. (DIVMI). Under this agreement, DSSI will provide indirect materials procurement services for all three DIVMI facilities located in Howell, Canton and Detroit, Michigan.

Diversified Machine will implement DSSI's process and web-based e- procurement system, Epic. Epic is a three-sided application that facilitates real-time communications between DIVMI requisitioners, DSSI buyers and suppliers. Diversified Machine will place orders from pre-negotiated customized catalogs, route those orders through electronic approval chains and track the lifecycle of the order from PO placement through delivery. Diversified Machine will also have access to place request for quotes and spot buys. DSSI's purchasing organization will manage these daily transactions from requisition to financial settlement as well as provide commodity management expertise and strategic sourcing.

"In our tough industry, we must seek out creative, value-added solutions to remain competitive," said Bruce Swift, chief executive officer of Diversified Machine, Inc. "DSSI's purchasing solution which offers multi- customer aggregation and efficient transactional processing is one of those solutions. Diversified Machine will benefit from world-class pricing that even by leveraging the volume of all our plants together, we would not be able to achieve on our own."

"Diversified Machine and other companies of comparable size can benefit greatly from outsourcing their indirect purchasing. DSSI along with other procurement BPO's have become so efficient at processing transactions, leveraging volumes and performing the value added commodity management on this non-strategic function that it is getting harder for a company to justify keeping it in house," said Scott Camera, vice president of business development for DSSI.

"We are pleased Diversified Machine recognized the value in our solution. We look forward to a quick launch and ramping up savings as fast as possible."

DSSI LLC is a leading provider of procurement outsourcing services. Based in Southfield, Michigan, DSSI also has offices in Atlanta, Georgia and Louisville, Kentucky. For more information about DSSI, visit http://www.directsourcing.com/

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