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People buy parts. People sell parts. This is where they meet.

Syspro IMPACT Encore Sutton Software User Meeting: Introduction to SupplierMarket.com. SM. People buy parts. People sell parts. This is where they meet. SM. Iain Michel Director, Business Development May 18th, 2000. Today’s Agenda. Marketplace Overview. SupplierMarket.com Solution.

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People buy parts. People sell parts. This is where they meet.

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  1. Syspro IMPACT Encore Sutton Software User Meeting: Introduction to SupplierMarket.com SM People buy parts. People sell parts. This is where they meet. SM Iain Michel Director, Business Development May 18th, 2000 Proprietary & Confidential

  2. Today’s Agenda Marketplace Overview SupplierMarket.com Solution Product Demonstration Buyer/Supplier Case Studies Proprietary & Confidential

  3. Marketplace Overview SupplierMarket.com Solution Product Demonstration Buyer/Supplier Case Studies Proprietary & Confidential

  4. Market Dynamics Create Inefficiency • Matching Buyers And Suppliers In Mid-sized Manufacturing And Distribution Companies Is Inefficient • High degree of fragmentation, regionalized supply base • Paper-intensive process, weak information flows • Dependant on procurement departments with limited resources • Market Inefficiencies Lead To Problems For Buyers And Suppliers • Buyers can only reach a limited network of suppliers • Suppliers experience difficulty filling excess capacity • Companies incur high cost of sales forces, agents, and procurement teams • Buyers and suppliers spend significant time and resources negotiating and executing request for quotes (RFQ’s) Proprietary & Confidential

  5. Why the Internet? • The Internet offers several advantages over current procurement processes: • The Internet is the industry neutralizer • Level playing field for all constituents • Reduces cost/complexity of IT deployment • Centralized updates replace distributed software updates/maintenance • Integration efficiencies (many-to-many versus one-to-one) • Smaller companies gain access to best of breed solutions “We estimate that between 1998 and 2003, U.S. business-to-business e-commerce will grow by 33% per year and reach $2.8 trillion in transaction value.” ~ The Boston Consulting Group Proprietary & Confidential

  6. Estimated Annual Growth Rate = 159.4% Explosive B2B Market Growth Business-to-Business E-Marketplace Commerce ($ in Billions) $2,704 $1,202 $550 $233 $73 $23 2001 1999 2000 2002 2003 2004 Source: The Gartner Group, January 2000 Proprietary & Confidential

  7. Manufacturing Procurement Profile Profile of Manufacturing Company Purchasing Indirect – Non-Standard Indirect - Standard Direct Source: Mitchell Madison Group Current procurement solutions tend to focus on catalog-ready items Proprietary & Confidential

  8. Marketplace Overview SupplierMarket.com Solution Product Demonstration Buyer/Supplier Case Studies Proprietary & Confidential

  9. SupplierMarket.com • The Internet marketplace for manufactured direct materials and built-to-order industrial parts: • Automates RFQ process for direct materials • Matches buyers with qualified suppliers • Conducts live Internet bidding events • Buyer selects preferred supplier online • Buyer/Supplier complete due diligence and PO process • Key Benefits: • Buyers save money and time, reduce paperwork • Suppliers generate incremental sales with minimal effort Proprietary & Confidential

  10. Market Differentiation • Differentiating features include: • Low/no risk usage; no up-front investment • Neutrality to buyers and suppliers • Accessible to any size company • Accessible to many industrial verticals • Full e-Commerce solution capability • SupplierMarket.com is positioned to be the market leader in Internet-based direct materials procurement Proprietary & Confidential

  11. How we are Positioned for Success… • Experienced team • Over 125 employees total • Experience management team with deep industry background • 45 sales professionals and 50 procurement specialists • Market making capability with significant bidding event volume across many commodity areas • Account managers • Market makers • Supplier managers Proprietary & Confidential

  12. IMPACT Encore Partnership • Syspro customers gain access to web-based marketplace through familiar interface • Three currently planned integration points • PO/RFQ module to SupplierMarket.com marketplace • SupplierMarket.com closed bid event to Encore purchase order • SupplierMarket.com “lead” to Encore (e-mail/CRM) • Syspro customers can use the marketplace today (visit www.SupplierMarket.com) Syspro and SupplierMarket.com bring internet marketplace sourcing and selling to your desktop Proprietary & Confidential

  13. Target Industries/Products • Successful industry/ product characteristics: • Fragmented supply base • Supplier adds value to raw material • Design requirements are easily described • No brand names or stock items • Packaging • Corrugated • Pallets • Tape • Plastic products • Injection molding • Blow molding • Extruded • Metal forming • Castings • Forgings • Stampings • Machined parts • Metal bending • Plating • Rubber products • O-rings • Gaskets Proprietary & Confidential

  14. Target industries / products Continued Growing opportunities • Wood Products • Cut Lumber • Textiles • Non-Woven • Woven • Chemicals • Inorganic • Organic • Adhesives • Specialty Items • Electrical • PCB’s • Wire Harnesses • Power Supplies • Passive Components • Commodity Semiconductors Future opportunities • Plastics and Rubber: • Compression Molds • Commodity Resins • Fabricated Metals • Tubular Products • Wire Products • Services • Auto Leasing • Financial • Logistics • Utilities Proprietary & Confidential

  15. Track Record • Significant database of registered and verified users • Over 5000 buyers on the site • Over 9000 suppliers on the site • Unique users verified to be a manufacturing or procurement professional • Successful bidding events being leveraged into a strong RFQ pipeline • Savings on RFQs range from 5 – 40% • Significant RFQ volume currently committed to SupplierMarket.com • Approximately 40% of active buyers have participated in more than one bidding event Proprietary & Confidential

  16. Illustrative Significant Value Generated 17% Average to date Sample Includes RFQ’s greater than $100K Proprietary & Confidential

  17. Reduces prices 15-20% Access new, qualified suppliers No IT investment Buyer effort reallocated to “strategic” tasks/analyses Generate new business Exposure to large buyers Efficient access to small buyers Eliminate 5-15% marketing/ sales costs Reduce costs of staff Focus on core capabilities Value Proposition Buyers and Suppliers • Reduce time spent searchingand negotiating • Automates RFQ process • No cost/ risk to participate • Increase profits Buyers Suppliers Proprietary & Confidential

  18. Current RFQ Process • Highly Paper Intensive • Many steps • Many information dependencies • LOTS OF TIME 1.Write RFQ 4.Obtain supplier information 2.Identify potential suppliers 8.Obtain bids 5.Qualify suppliers 7.Answer questions Buyer Activities 3.Contact potential suppliers 6.Distribute RFQ 9.Select supplier 5.Clarify Requirements Supplier Activities 3.Receive RFQ 6.Develop Quotation 2.Provide capability information 1.Market to buyers Place ads, attend trade shows 4.Collect buyer information Deploy sales force, Mfg. reps 7.Submit Bid Proprietary & Confidential

  19. SupplierMarket.com Process • Significantly fewer steps • Reduces information dependencies • Eliminates paper processes • SAVES TIME 1.Write RFQ 2.Answer questions 3.Select supplier Buyer Activities Supplier Activities 1.Receive RFQ 2.Clarify Requirements 3.Develop Quotation 4.Submit Bid Proprietary & Confidential

  20. How we work Proprietary & Confidential

  21. Conclusions • We are executing an aggressive, strategic plan • Partnerships with industry leaders • Expanding the marketplace to drive customer value • We are building the business to provide value-added features for all constituents • Buyers seek greater functionality and increased participation • Suppliers drive differentiation on features other than price • Technology differentiators contribute to our leadership • Significant new releases every two months • Responding to customer feedback and learnings • The value proposition has been proven • Buyers and suppliers show high repeat usage rates • Market participation continues to grow Proprietary & Confidential

  22. Marketplace Overview SupplierMarket.com Solution Product Demonstration Buyer/Supplier Case Studies Proprietary & Confidential

  23. SM People buy parts. People sell parts. This is where they meet. SM SupplierMarket.com is a leading Internet marketplace that connects buyers and suppliers of manufactured direct materials. For more information please visit our booth or our website at: www.SupplierMarket.com Proprietary & Confidential

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