SOURCE: CVM Solutions

CVM Solutions

April 14, 2011 11:00 ET

CVM Solutions Continues Momentum and Reports Record Revenue Growth in First Quarter of 2011

Customers Such as Hilton Worldwide Benefit From CVM Supplier Central™ to Manage Supplier Programs

CHICAGO, IL--(Marketwire - Apr 14, 2011) - CVM Solutions, a premier provider of supplier management solutions, today announced record first quarter revenue in 2011 representing 32 percent quarter over quarter growth. This represents the third consecutive 30 percent growth quarter for the Company.

The rising interest in supplier management solutions, demand for supplier data enrichment services, and the need for corporations to diversify their supplier base have resulted in the company achieving record revenue in the first quarter of 2011. Throughout the quarter, CVM also has seen significant expansion of its customer base and achieved organic growth of 32 percent, compared to the same period in 2010.

"Our success so far in 2011 continues to be driven by the strong value our solutions bring to our clients," said Greg Silich, CEO, CVM Solutions. "Hilton Worldwide and many other customers select CVM because our clients see results. This quarter, through the adoption of our Supplier Central 10 product, as well as our supplier data enrichment and supplier diversity solutions, we have become a trusted partner to a growing number of companies and are delivering more cost efficiencies faster than ever before. Our results this quarter are clear evidence of the continued value our solutions deliver to our clients."

Hilton Worldwide has seen tangible benefits working with CVM. Before establishing relationships with new suppliers or service providers, Hilton Worldwide requires them to complete a Supplier Registration Form for pre-qualification. The automated self-service supplier registration process, for example, requires four simple steps focused on walking the supplier through a consistent and standardized process. "With CVM Supplier Central, Hilton Worldwide was able to lower the cost of qualifying and managing our suppliers through the automation of existing manual processes," said Fred Lona, senior director, supply management, Hilton Worldwide.

The Aberdeen Group, a leading industry analyst firm, provides a valuable perspective on the value supplier management technology brings to customers. "While supplier management has always been a critical aspect to doing business, the tools and processes used by organizations to monitor and manage supplier relationships today have evolved tremendously over the past decade. Fueled by outside factors such as the need for transparency on suppliers for both direct and indirect supply chains, and increased demands for measuring suppliers against areas such as corporate social responsibility goals, supplier management functions have moved from the 'back-office' to the boardroom,"1 said Constantine Limberakis, Senior Research Analyst, Global Supply Management, Aberdeen Group.

Industry Trends Drive Record Growth

Driving the growth at CVM in Q1 2011 are a number of industry trends, including a growing awareness of supplier management benefits such as the substantial cost efficiencies that result from the automation of manual processes and improved supplier data quality. Recent global events in Egypt, Libya, and Japan also have caused many supply chain executives to question their readiness and ability to deal with the resulting supplier disruptions and to seek CVM solutions to provide increased visibility on suppliers and mitigate supplier disruption risk. Continued M&A activity in 2011 also resulted in Fortune 1000 (F1000) companies looking for ways to identify and track ownership changes in their supplier base in order to leverage spend and mitigate the potential negative impact of these changes. F1000 companies also are increasingly seeking ways to better align their supplier base with the evolving ethnicity and changing demographics of their employees and customer base in order to achieve diversity goals.

These trends have resulted in many customer wins for CVM Supplier Central 10 in 2011. Available on Force.com, salesforce.com's leading enterprise cloud computing platform, CVM Supplier Central 10 offers companies a simple and cost-effective solution to deploy, configure and integrate supplier management solutions to achieve operational efficiencies while lowering costs and mitigating supplier risk.

Q1 2011 Results

CVM reported that in Q1 2011 it experienced strong customer expansion and growth:

  • 8 new customers, including many F1000 companies. New customers include AGL Resources, BASF Corporation, Becton, Dickinson and Company, Life Technologies Corporation, and SunGard.
  • 12 expanded customer relationships. Customers expanding their use of CVM supplier management solutions include Federal Home Loan Bank Atlanta, L-3 Communications Holdings, Lockheed Martin, Securitas Holdings, and Wal-Mart Stores.
  • 16 CVM supplier management solutions contract renewals. Companies renewing their contracts with CVM include Boston Scientific, Intel, Johnson Controls, OfficeMax, and Walgreen.

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About CVM Solutions
CVM Solutions is the premier provider of supplier management solutions that enable clients to achieve operational excellence, drive cost savings and mitigate supplier risk. CVM's innovative technology and the industry's leading supplier database provide truly unique capabilities for supplier management. With vast supplier intelligence, deep experience and customer-focused results, CVM has helped more than half of the Fortune 100 to realize tangible benefits. For more information, visit www.cvmsolutions.com.

1Supplier Management Benchmark: Perspectives on Supplier Management in 2011
Constantine G. Limberakis, Senior Research Analyst | Global Supply Management, Aberdeen Group

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