Event
Summary
As vertical B2B marketplaces multiply like rabbits, i2 Technologies is
nurturing a warren of its own. Some observers estimate that today's 400
or so B2B sites will proliferate to over 10,000 over the next few years.
This hardly seems to be an exaggeration considering that vendors from
all areas, ERP, supply chain management, CRM, e-commerce, have discovered
synergies between e-markets and their core functionalities.
i2
has announced seven since introducing Rhythm eXchange Services in June
1999, a progenitor of TradeMatrix, which provides the underlying technology
for the new portals.
|
Vertical
Marketplace
|
Vertical
Focus
|
i2
Equity Partners
|
Open
for Business
|
| HightechMatrix.com
|
High
tech electronics |
none
|
Now
|
| SoftgoodsMatrix.com
|
Apparel
and softgoods |
VF Corp. |
April
1 |
| Fasturn.com
|
Apparel
and textiles |
Fasturn,
Inc. |
Second
quarter |
| MyAircraft.com
|
Aerospace
|
Honeywell
International
United Technologies Corp. |
Second
quarter |
| iStarXchange |
Automotive
parts and service |
Toyota
Motor Sales, Inc. |
Second
quarter |
| Tradematrix
Retail Services |
Retail
and consumer goods services |
none
|
Second
quarter |
|
Horizontal
Marketplace
|
Focus
|
Open
for Business
|
| FreightMatrix.com |
Logistics
providers and the services source for shippers participating in vertical
TradeMatrix marketplaces |
Second
quarter |
Market
Impact
Individually, each of these marketplaces offers advantages to buyers and
sellers. Buyers benefit from cost reductions gained from order consolidation
and convenient tracking of orders. Sellers are able to expand their market
presence more effectively than traditional approaches.
While
the majority of online marketplaces are intended for purchasing indirect
materials, i2's family can offer both indirect and direct procurement
as well as services based on its supply chain optimization technology.
This gives it a great advantage over other players in this market space.
Materials used directly in manufacturing finished goods must arrive on
time and in the correct quantities, but most e-markets support making
the transactions only and do nothing to aid users in determining when,
what, and how many parts to buy.
A
key ingredient of i2's marketplaces, and the one that differentiates them
from competitive offerings, are their planning and optimization services,
such as those of i2's latest release, FreightMatrix. Unveiled recently
at the Internet and Electronic Commerce Expo in New York City, FreightMatrix
is ostensibly a vertical marketplace for logistics service providers,
but additionally provides the back-end fulfillment capabilities for i2's
other procurement matrices. While FreightMatrix is transparent to users
of the other markets, it provides support for the various order consolidation
and ensures promised cost savings are a reality.
User
Recommendations
Though proposed benefits sound impressive, the fact remains that most
vertical B2B marketplaces are just getting started and have yet to prove
themselves. Press announcements predictably avoid mentioning the tremendous
dedication required from procurement workers and technical staff to maintain
the content for these marketplaces. Problems are compounded by the rampant
lack of knowledge in organizations that are accustomed to twentieth century
modes of procurement. Technology always arrives before people acquire
the skills they need to manage it effectively. Whether users who sign
onto these marketplaces realize promised rewards remains an open question.
Of
all the companies hawking e-markets, though, i2 has the vision, capital,
and strategic partners in place to make the proposed benefits a reality.