10 May 2005

UGS and A.T. Kearney Procurement Solutions Announce Sourcing Community Powered by Teamcenter®

FOR RELEASE Tuesday, May 10, 2005

International Supply Management Conference – San Antonio, Texas – UGS Corp., a leading global provider of product lifecycle management (PLM) software and services, and A.T. Kearney Procurement Solutions, offering leading strategic sourcing services, today announced the availability of Sourcing Community, the latest release of product lifecycle sourcing solutions powered by UGS’ Teamcenter® software.  Sourcing Community combines web-based RFx (Request for Proposal, Request for Information, etc.) and sourcing survey capabilities with Teamcenter knowledge management and collaboration solutions to further integrate the sourcing and change management processes.

UGS and A.T. Kearney Procurement Solutions are demonstrating the new technology at the International Supply Management (ISM) Conference on May 8-10 in San Antonio, Texas.  The announcement represents the strategic next step in the extension of Teamcenter PLM technology to support the needs of business users.

UGS considers the expansion of PLM to unite both product development and business data and processes as core to their product strategy.  The company has partnered with A.T. Kearney Procurement Solutions, a Strategic Partner in the UGS Partner Program, to jointly develop the Sourcing Community solution, which will be delivered to customers directly through UGS’ direct channel and through A.T. Kearney’s strategic sourcing activities.

Sourcing Community combines sourcing with collaboration and product data management (PDM), to provide one window access to sourcing and product data to all stakeholders in the supply chain, increasing sourcing productivity, compressing sourcing cycle time and enabling early supplier involvement to design the cost out of products.

“The joint development of the Sourcing Community solution by A.T. Kearney Procurement Solutions provides us with a key validation of the wide use of Teamcenter for a variety of business uses,” said Raj Khoshoo, vice president of strategic initiatives, UGS.  “More importantly, by providing this integration on the Sourcing Community platform we have enabled collaboration, program management and seamless integration with office tools, all provided on the familiar Microsoft desktop to ensure usability by business users with minimal training.”

Sourcing, Collaboration, Change Management Now Tied Together

With this release, Sourcing Community further ties A.T. Kearney Procurement Solution’s sourcing best practices and intellectual capital with UGS’ leading knowledge management and change management processes for an end-to-end approach.  As product changes are invoked, Product Bill of Materials (BOMs) and associated data are automatically gathered and routed to sourcing teams for incorporation in bid packages, eliminating idle time and increasing overall sourcing productivity.  The impact of product changes can more readily be understood by sourcing teams with direct access to part usage information and product configuration information from PDM, helping to streamline and eliminate RFx duplication across product lines and suppliers.

The one window access to both product and sourcing data in a collaborative environment makes it easier to involve suppliers early in the process, increasing collaboration in the more upfront stages of product development, increasing innovation and eliminating rework to help design the cost out of products.

“Sourcing Community has really made it easy for A.T. Kearney Procurement Solutions to deliver significantly increased added value to our customers,” says Joseph Raudabaugh, president of A.T. Kearney Procurement Solutions. “Sourcing Community can quickly be deployed, and tailored as we define the sourcing best practices for the customer.”

About Teamcenter

Teamcenter, the de facto standard for PLM, connects people and processes – creating, capturing and sharing product knowledge to power innovation and productivity, through an integrated portfolio of proven solutions built on Teamcenter’s open PLM foundation.  Teamcenter leads the PLM industry with digital product development, engineering process management and product knowledge management solutions that deliver fast time-to-value.

About A.T. Kearney Procurement Solutions

A.T. Kearney Procurement Solutions (www.atkearneyprocurementsolutions.com) provides comprehensive strategic procurement services to clients with needs that range from tactical cost savings to outsourced strategic sourcing services to complete procurement transformation.  A.T. Kearney Procurement Solutions augments the strategic sourcing expertise of A.T. Kearney (www.atkearney.com), one of the world’s largest management consulting firms.  With a global presence that includes more than 60 offices in 37 countries, spanning major and emerging markets, A.T. Kearney provides strategic, operational, organizational and technology consulting and executive search services to the world’s leading companies.

About UGS

UGS is a leading global provider of product lifecycle management (PLM) software and services with nearly 4 million licensed seats and 42,000 clients worldwide.  Headquartered in Plano, Texas, the company promotes openness and standardization and works collaboratively with its clients in creating enterprise solutions enabling them to transform their process of innovation and thus begin to capture the value of PLM. 


Note to editors:  UGS and Teamcenter are trademarks or registered trademarks of UGS Corp. or its subsidiaries in the United States and in other countries.  All other trademarks, registered trademarks or service marks belong to their respective holders.


The statements in this news release that are not historical statements, including statements regarding expected benefits of the product, adoption by customers, continued innovation and other statements identified by forward looking terms such as "may," "will," "expect," "plan," "anticipate" or "project," are forward-looking statements. These statements are subject to numerous risks and uncertainties which could cause actual results to differ materially from such statements, including, among others, risks relating to developments in the PLM industry, competition, failure to innovate and intellectual property. UGS has included a discussion of these and other pertinent risk factors in its registration statement on Form S-4 most recently filed with the SEC.  UGS disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.