McCarthy On-Line and the AST group have launched a joint venture to offer a business-to-business (B2B) hosted procurement solution and electronic hub.
The companies have formed Procuretrade, a new company initially focused on assisting organisations to leverage their buying power and reduce procurement costs through Internet technologies.
Lourens Botha, MD McCarthy On-Line, says the initiative is different from the likes of Commerce-One`s e-procurement system in that it is localised for SA. "It is all about momentum," says Botha. "We need to be in the market early and cut our teeth on B2B e-commerce early too."
McCarthy has defied conventional wisdom by hitting the business-to-customer e-commerce marketplace first, with its Call-A-Car and MegaShopper services.
It hopes to bring its experience in Internet-based trading to the party, while AST is expected to offer consultancy and technology through its Bentley West Management Consultants and AST Enterprise Hosting. AST-Abraxas IT Solutions Gauteng`s skills will also be leveraged to provide systems integration and development.
The first customer most likely to benefit from Procuretrade will be McCarthy Retail, one of the country`s five largest retailers and McCarthy On-Line`s holding company. Other customers are expected to emerge primarily from the financial services, mining and manufacturing sectors.
Botha predicts that within five years, all suppliers will be connected to some form of e-procurement system, as the large retailers have the power to dictate to their suppliers. "GartnerGroup recently forecast that the worldwide market for B2B e-commerce will expand to $7.3 trillion by 2004. Through Procuretrade we will have a substantial share of that business within Southern Africa," adds Brand Pretorius, chairman of McCarthy On-Line.
Infobank`s InTrade e-Hub software has been selected as the hub for Procuretrade, and the company will also offer a hosting service. Other AST technologies are available for customer solutions, including AST`s own IntelliSwitch product, which handles inter-company collaboration and exchange transactions.
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