The South African subsidiaries of world e-business players, SAP and Commerce One, have reacted positively to the announcement by the global mining and metals procurement marketplace of the selection of Commerce One/SAP as the preferred technology suppliers to the new e-commerce marketplace.
"This decision proves that the market has confidence in the SAP/Commerce One alliance, and that SAP has been accepted as a strong e-commerce player," says Simon Carpenter, general manager at SAP Africa responsible for the mySAP.com Internet components.
"With the mining sector contributing a high percentage to the South African economy, this decision opens the door for other sectors to enter into similar marketplaces."
Michael Bosman, Chief Operating Officer, Commerce One South Africa, concurs, adding: "This announcement illustrates that the relationship forged between Commerce One and SAP is having an immediate impact on the business-to-business (B2B) environment.
"Mining is critical to the success of southern Africa, and the implementation of this procurement marketplace will enable local companies to take advantage of both the cost saving and revenue raising opportunities."
He says Commerce One South Africa and SAP Africa will be working closely together to deliver the solution to the South African companies represented in this global marketplace.
Development of the technology solutions will commence as soon as definitive agreements are in place. The mining, metals and minerals marketplace is expected to begin processing transactions during the fourth quarter of 2000.
Formed in May, the exchange is a consortium of 15 mining and metals groups aimed at automating the procurement of products and services used in the exploitation and processing of metals and minerals. Members include Anglo American plc, De Beers Consolidated Mines Ltd, Rio Tinto, The Broken Hill Proprietary Company (BHP) and Alcan Aluminium Limited.
Tracy A. Stevenson, Interim CEO of the marketplace, said yesterday (15 August 2000): "We have conducted a very comprehensive evaluation process with the leading technology suppliers, all of whom have demonstrated excellent capability and we were extremely pleased with their efforts. Commerce One/SAP has best demonstrated its capability and commitment to providing the advanced technology solutions that will transform the procurement processes of buyers and sellers throughout the global mining, metals and minerals industry. I am confident we will finalise a formal agreement within the next two weeks."
"These visionary companies have recognised the dramatic positive impact e-commerce can have on the metal and mining industries, and we`re pleased Commerce One/SAP are part of their effort," said Mark Hoffman, chairman and CEO of Commerce One.
"We`re looking forward to working with SAP to help these 16 corporations move their industry onto the Internet, adding a major new e-marketplace to the Commerce One Global Trading Web, the world`s largest business-to-business trading community."
"SAP and Commerce One bring together their industry leading capabilities to provide an unrivaled marketplace solution for leading global industries, as exemplified by the joint solution we will put in place with the premier companies in the mining and metals industries," said Mayur Shah, president of SAPMarkets, Inc., "We are placing the full commitment of SAP and Commerce One behind the success of this major global marketplace."
Background Information
The mining and metals procurement marketplace will create a platform to bring together mining, minerals and metals producers and suppliers and will provide unrivaled access to procurement sources worldwide. It is anticipated that the expansive, open and neutral platform will transform the procurement practices of the mining, minerals and metals industry and bring significant benefits to both suppliers and buyers through standardisation, transparency, streamlined transaction processes and improved inventory management. The new virtual marketplace will utilise a common catalogue of products in multiple languages and will allow participants, regardless of size and location, to access and trade with a large pool of suppliers both locally and around the world. In 1999, the estimated procurement spending of the industry was approximately US$200 billion.
In June 2000, SAP and Commerce One announced the teaming of Commerce One`s leading e-marketplace infrastructure and B2B solutions with top-rated mySAP.com e-business applications from SAP. The joint offering combines e-procurement with collaborative services for trading communities, dramatically reducing cycle times, improving customer relationships and increasing productivity for businesses worldwide. The Commerce One and SAP team strategy is unique in the industry, including product strategy, co-engineering, joint marketing, sales and support, and thus offers enterprises and trading communities a single source for the entire range of open business-to-business solutions and e-marketplaces.
Share
