Electronic marketplaces on the way

More electronic marketplaces are set to open in New Zealand after major deals involving Telecom and Ariba.

More electronic marketplaces are set to open in New Zealand after major deals involving Telecom and Ariba.

The prediction comes from e-commerce joint venture company e-solutions after "selling" its BusinessXchange product to Telecom in a six-figure deal. BusinessXchange allows businesses to connect and transact over the Internet.

E-solutions has also agreed to use under-license ORMX software from US e-commerce firm Ariba MX software in BusinessXchange. Ariba won the tendering process, displacing SAP, who was used in a pilot programme.

E-solutions is an e-commerce joint venture between Telecom, Microsoft and EDS.

E-solutions say the "contract for payment was held by Telecom". Its marketing manager Sue McCarty says this means Telecom is treated as "a real customer", making genuine payments to e-Solutions, some of which goes back to Telecom, since it owns a third of e-solutions.

The Telecom deal is Ariba’s first in the Asia-Pacific region, whose system went live last month at 166 sites and became a hub to its suppliers.

E-solutions general manager Jane Freeman says as well as Telecom, her company is now working with health industry supplier Baxter and three other organisations to further develop B2B marketplaces.

While she says big businesses like Telecom will be the catalysts of the B2B marketplace, smaller firms can also benefit from scalable solutions for firms of all sizes.

Telecom's system features electronic catalogues from eight suppliers covering a wide range of commodities such as office supplies, promotional items and office equipment consumables.

The solution, says Ariba, allows spend to be aggregated and directed to preferred suppliers for a claimed "considerable cost reduction" in Telecom's cost base.

All users subscribe to and purchase orders routed through Ariba's global B2B Commerce Service Network, which offers electronic invoicing with automatic reconciliation and payment.

Customised e-forms are also made available for requesting a credit for overcharges, replacement goods and closure of partially received orders.

Telecom commercial and deployment strategist Sarah Davies says the Ariba platform was fully integrated with Telecom's SAP, ERP and HMRS systems within three months.

Telecom plans to deploy an extra 2000 users across New Zealand throughout June and July, followed by a second wave in which an extra 12 suppliers will be brought online.

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