Firms urged to join transtasman e-mart

By ADAM GIFFORD

New Zealand firms are being urged to capitalise on corProcure, the online business-to-business marketplace being developed by 14 of Australia's largest companies.

The marketplace is being built with technology from SAP and Commerce One, with hosting, network infrastructure and systems integration from Telstra and PricewaterhouseCoopers. Web design is by Australian firm marchFirst.

But corProcure will face stiff competition in the growing electronic marketplace space from both local market sites such as e://volution and another transtasman trading hub, Cyberlynx. The latter is a venture between the Commonwealth Bank, Woolworths, Lion Nathan, EDS Australia and Telecom New Zealand, which also aims to bring suppliers and customers together over the internet. Cyberlynx is powered by Ariba software.

"There's a real danger companies here may be lulled into such a false sense of security that they can develop New Zealand marketplaces and ignore the rest," said SAP New Zealand manager Viv Gurrey.

"They must start playing in the regional and global economy."

She said Australasia was one market for most companies. The corProcure shareholders include companies with a New Zealand presence, such as AMP, ANZ, BHP, Coca-Cola Amatil, Coles Myer, Foster's Goodman Fielder, Orica, Pacific Dunlop, Qantas, and Telstra, along with Amcor, Australia Post and Wesfarmers.

The companies spend more than $2 billion in indirect purchasing a year, and they're keen to cut down procurement costs.

"There are internal administration costs and overheads which can be cut out, as well as shortening the time the whole process takes."

To participate in corProcure, companies need to establish online connections and supply contracts with their buyer or buyers within the corProcure consortium. Initially the marketplace will cater to companies for buying and selling indirect materials and services - essentially maintenance, repair and operations. It will later expand to include the entire supply chain, including raw materials and manufacturing components.

Ms Gurrey said the marketplace will use open technologies, so companies will not need to have SAP software to participate. She said the corProcure initiative would complement the Telstra-mySAP.com marketplace announced two months ago.