M-Web`s e-business portal CommerceZone has processed over R11 billion worth of transactions through its systems since it began operations in 2001, says CEO Andreij Horn.
While companies within the Naspers group, which ultimately owns M-Web and CommerceZone, conduct about 70% of these transactions, Horn says he expects outside companies to equal or surpass the Naspers share within the next 18 months.
"CommerceZone has seen exponential growth since its inception, largely due to the realisation that the adoption of business-to-business can save an organisation a lot of money," Horn says.
Around R2.5 billion worth of transactions were carried out over the CommerceZone system in 2001/02, and this grew to more than R3.3 billion in the following year and R5.4 billion in the 2003/04 year. The average monthly transaction value is R450 million.
The model used by CommerceZone was to first sell the concept to the Naspers companies on an individual basis and introduce a "new way of purchasing supplies". None of the companies, or business units, was coerced into using the service and each had to "buy-in".
Horn says that since Naspers` subsidiaries were bottom line-incentivised, they had to see the real savings benefits before they broke away from their established methods.
"The whole point of CommerceZone is the shared services that allow for the aggregation of volumes that allow for better pricing and benefits for the end-user," he says.
CommerceZone puts out to tender certain requirements, such as stationery, and then gets a supplier to commit to keeping the price steady for a year. This makes budgeting easier and shortens the processing cycle.
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