TradeWorld, the supplier focused e-commerce trading portal in the Johnnic Group, has contracted e-marketplace operator Miraculum to provide the group with electronic procurement solutions.
The venture involves the establishment of a private e-marketplace - called TradeWorld Xchange - which is hosted by Miraculum. This exchange has been set up to operate as a private marketplace enabling the Johnnic group to leverage better strategic sourcing opportunities across the entire organisation, while simultaneously providing an improved framework of internal control of the procurement process.
It will also serve as a platform to increase the business exposure TradeWorld provides to the existing subscribers of its supplier focused trade facilitation portal. This has been TradeWorld`s core business for over 60 years and currently processes over 40 000 RFQs (Requests for Quotations) resulting in 1.4 million trade notifications a month.
The new TradeWorld Xchange has gone live with TradeWorld itself as the first company in the Johnnic stable purchasing from corporate consumables supplier, The Corporate House.
The second phase which is currently underway, involves other Johnnic group companies such as MTN and Johnnic Publishing, and group suppliers for stationery and computer consumables joining TradeWorld Xchange.
"TradeWorld`s vision is to be the leading end to end trade facilitation service provider in Southern Africa and in line with that vision we have a significant supplier centric focus and ethos," Francois Naude, TradeWorld Operations Director explains.
"TradeWorld and the Johnnic group of companies established TradeWorld Xchange as a specialised division focused on providing the group with a co-ordinated e-procurement capability. We expect to process in excess of R2 billion in annual group spend through TradeWorld within the next three years and achieve a minimum of 2% in savings.
"While driving at savings we have a parallel, and often conflicting, objective of increasing group spend on black empowerment and small and medium enterprises to more than 40% of total spend. Achieving the fine balance between these objectives requires a combination of new generation procurement tools and our bespoke solutions to provide communication mechanisms with developing businesses. In this regard we have developed multiple communication channels and have even launched Tender Advice Centres in developing communities to assist in the process.
"We chose Miraculum to provide infrastructure, hosting and administration services to the TradeWorld Xchange because of their deep understanding of procurement business and the ease of integration of their technology platform into the main Oracle ERP system in the group," he adds.
Miraculum MD Brandon Spear notes that TradeWorld Xchange has taken advantage of the robust, end-to-end outsourced trading exchange solution that Miraculum offers.
"As part of the Johnnic group, TradeWorld is one of many customers who require a private marketplace but don`t want to purchase the software themselves. This, coupled with the alignment of the Miraculum and TradeWorld strategies makes this alliance of strategic importance to both parties. Indeed, we anticipate that our relationship will grow to incorporate other ventures which will be mutually beneficial to both companies," Spear concludes.
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