M-WEB COMMERCEZONE SMASHES THE R10BN TRANSACTION BARRIER
M-Web CommerceZone, an independent local business-to-business e-marketplace, saw its transaction volumes smash through the R10bn mark this week, defying common opinions that e-business is floundering. Achieving growth against the odds since its establishment just under three years ago, M-Web CommerceZone recorded orders worth R2,5bn in its first year of operations between 2001 and 2002. In the last financial year, recorded transactions virtually doubled to R4,6bn. By Q2 2003 transaction volumes were rocketing towards the R9bn mark, culminating in last week’s announcement that the R10bn barrier had been broken.
Andreij Horn, M-Web CommerceZone’s GM, attributes this success to the fact that customers on the buy and supply side are seeing lucrative bottom line returns."M-Web CommerceZone combines an e-procurement offering with a strategic sourcing project for each client. By adding a new client’s indirect procurement volumes to the billions that we already manage for existing clients, we can offer an immediate reduction in procurement costs, and a contract management service that ensures that the unique quality, service and other requirements of the new client are met. By enabling even the most complex of our customers to feel the benefits of e-procurement within 12 weeks of implementation, they see real return on investment in the same year as joining our system," he says.
M-Web CommerceZone deploys purpose-built private exchanges for each of its clients, and strategically sources a select group of suppliers to provide clients with indirect goods and services. These fully integrated, cutting-edge technical solutions aim to further provide clients with an affordable way to streamline their business processes and improve supply chain management and control. With the importance of the new black economic empowerment (BEE) scorecard, M-Web CommerceZone has also acquired a number of thoroughly tested BEE suppliers online to assist clients to achieve their empowerment status. "E-procurement is back on the corporate agenda. But, as with all other ICT-related projects, customers are now demanding to see proper business cases that deliver a measurable return on investment. It will be the service providers who can deliver on these expectations who will be the survivors of the local B2B industry. Given our successful track record and credibility as a secure, long-term e-procurement partner, M-Web CommerceZone is confident of being able to lead in this industry and further expand on our extraordinary growth," Horn concludes. Major clients include Media24, M-Web, MultiChoice, Nasbook, M-Net, SuperSport, Educor, BA/Comair, Capitec Bank, Sun Couriers and Panorame Medi-Clinic.