1. EASTMAN CHEMICAL MAKES PROCUREMENT A STRTIGIC ADVANTAGE By: Joe Steinbach

2. Outline  Introduction  History  Financial  Brief Summary  Questions  Conclusion

3. History  1920 company formed  Largest Polyester Plastics for packaging in the world  Headquarters in Kingsport, Tennessee

4. Financial Projected sales for 2006 are based on the industries 7% increase

5. Brief Summary  To increase compliance with purchasing policies  To support frontline employees while maintaining existing rules  To reduce procurement transactions costs via elimination of non-value-added and redundant processes  To leverage corporate spending to negotiate favorable trading terms with channel supply partners

6. Questions 1) Enter commerceone.com and find information about the capabilities of Buy Site and Market Site. How do the two applications differ? 2) Why did Eastman Chemical start first with e-procurement rater than with the sell-side?

7. Questions 3) In July 2000, Eastman Chemical introduced and EC project that enables buyers to participate in its private online price negotiations using Live Exchange from moai.com. Explain how the software works and why it is referred to as dynamic commerce. 4) Which of the problems cited in this case can be solved by other EC applications? Relate your answer to Commerce One products.

8. Conclusion  Introduction  History  Financial  Brief Summary  Questions  Conclusion