PurchasePro Makes Changes, Hopes For A Better Future

NEW YORK— While PurchasePro has received some negative press lately regarding the stability of the company, executives at the helm said they are hoping for a brighter future for the e-commerce specialty group. Allen Winder, newly appointed COO/evp said the company is operating on a seamless basis for its customers, even though there have been some significant corporate/structural changes, including the elimination of 50% of its staff and major executive management changes. “Our customers are getting exactly what they need through these transitions,” he said. “They are excited to see a more structured approach within PurchasePro and have seen no change in service or the way the system works.” He noted that over the last year or so, PurchasePro has helped some of the industrys largest lodging players increase their e-commerce reach and realize significant savings. For example, PurchasePro has worked with Hilton for more than a year and has increased the companys online supplier list from approximately eight to 1,200. Winder noted that there are currently 500 Hilton hotels up and running with the PurchasePro-powered system. The company also powers Best Westerns supply system, said Dick Moskal, svp/hospitality as well as between 10 and 15 small management groups consisting of a variety of hotel brands. And a new PurchasePro product called e-source, which is a live reverse auctioning service, is anticipated to get much attention within the lodging industry in the near future, said Moskal. The service allows a hotel to identify all the suppliers they want included in an auction for a particular item; they then log in the quantity they need of that item. Suppliers then bid down the price, depending on how low they are willing to go, to get the contract. Executives said that PurchasePro is just beginning to sell this service in the hospitality sector. As for the negative perception surrounding the recent downsizing and strategic realignment of PurchasePro, Winder said: “We are a software company and a network company. Weve realigned our vision- to provide great software with universal access to a great e-commerce network for companies of all sizes. We are now better staffed to do that.” “Since my arrival at PurchasePro…the senior management team and I have been developing our plans for a systematic implementation of our vision and strategy to realize full customer benefits, focus our employee resources and return value to our shareholders by leading PurchasePro to the strong financial returns we believe we can achieve,” said Richard Clemmer, CEO. He said four specific actions were taken— a reduction in force of 50%, a realignment and streamlining of its senior management, the implementation of a highly structured cost control program, and a strengthened and experienced sales team leading software products sales to increase revenues. The realignment also affected the senior management level. President Shawn McGhee resigned from his position effective June 30, and personnel changes were made across the board, at all levels. The companys senior management now consists of Clemmer, CEO; Winder, COO/evp; Jeff Anderson, senior vp for strategic alliances; Chris Benyo, senior vp of marketing and network services; and Dale Boeth, senior vp of consulting services. A search is currently underway for a new CFO- Clemmer had originally held that title, but has since been promoted. He is, however, still acting as CFO for the company in the interim. A new CFO is expected to be named within 60 days, according to the company. Ultimately, the company is seeking to maximize its focus on customer service in software, network sales and network development, said Clemmer. “In the past the company was more entrepreneurial. Today it is more focused and structured with a highly experienced staff.”