Online rivals update purchasing tools
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Online marketplace pioneer Commerce One plans to bolster its software with better supply-chain management tools, while rival Ariba also plans to focus on its core sourcing capabilities.
Commerce One will this month disclose its plans for Commerce One 5.0, an upgraded toolset that will offer revamped sourcing features to automate supplier relationships. "We've re-engineered from the bottom up," said Alexsis De Raadt-St James, Commerce One's chief strategy officer. "It became obvious that we didn't have a (competitive) sourcing solution to compete with Ariba."
She added that Commerce One is also reassessing the way it charges for software. This may lead to more subscription pricing for tools and Web services.
Meanwhile, rival Ariba is going back to its roots. John Watton, Ariba UK marketing director, said the firm is now focusing on e-sourcing and managing enterprise spending. He added, "(Company chiefs) never say, 'I need to collaborate or enable inter-enterprise relations'. They either need to reduce costs or increase revenues."
Online procurement remains a key part of many firms' strategies for 2002. UK government agencies are particularly active in the sector, with pilot schemes under way at the National Assembly of Wales, the DTI and the Driving Standards Agency.
Firms are still reporting integration as a complex task, however. David Murton, IT project manager at engineering firm Smiths Group, said, "We could not integrate Ariba with our ERP system and couldn't see the value of integrating it either."
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