HONG KONG, 1 September 2000 - In a report forecasting the regional business-to-business (B2B) outlook through 2004,
Gartner Group estimates B2B revenue growth in Asia Pacific will grow from US$9.2 billion this year to US$992 billion
in 2004, fueling the development of powerful new e-markets.
In order to penetrate this booming e-market swiftly, Alliente has decided to use Hong Kong as a stepping stone to enter the Greater China and other markets in Asia Pacific.
"The Asia Pacific region offers immense market opportunities in the area of indirect e-procurement," said Greg Spray, chief executive officer, Alliente. "Hong Kong is the trade center and gateway to developing customers throughout Asia Pacific. This investment will compliment current efforts with our global customers, as well as create independent opportunities for Alliente to expand our worldwide presence."
"The goal of Alliente Asia Pacific is to make available indirect procurement goods - like office furniture, PC's, temporary labor and travel services - at reduced prices, regardless of whether you are a small or large enterprise," said Betty Lin, managing director, Alliente Asia Pacific Limited. "Alliente Asia Pacific is in a unique position to offer this tremendous saving to Asia's businesses, because we combine the buying power of our world-wide customers to maintain economies of scale."
Hewlett-Packard signs on for customized, indirect e-procurement solutions
In response to what Alliente's current customers are, Spray mentioned that Alliente is currently providing total e-procurement solutions to several global companies, whose combined indirect spend is more than US$15 billion U.S. dollars annually. Alliente's customers include Hewlett-Packard Company (HP) and other Fortune top-20 and Fortune 500 companies.
"In addition, Hewlett-Packard has recently signed an agreement with us to become our first customer of indirect e-procurement solutions," he noted.
HP will use Alliente's Ariba-based automated enterprise solutions to outsource its indirect e-procurement processes, including catalog order management, supplier management and procurement card services. Indirect procurement provides the equipment and services employees need to do their daily jobs, including office supplies, computers and travel arrangements, but excluding raw materials.
HP's 86,000 worldwide employees will access Alliente's customized application via the Web, thus eliminating the need to install costly internal systems and software.
"Alliente is positioned to provide strategic solutions to streamline and automate procurement decisions and reduce our customers' operating costs," said Spray.
Alliente's e-procurement solutions
Customers outsource the implementation of the e-procurement solutions, as well as the ongoing management of their suppliers, to Alliente based on a proven track record in Ariba solution implementation and management. Users of Alliente's Ariba Buyer-based e-procurement solution can submit a purchase request via an Internet browser, have the request automatically routed to the appropriate managers for approval and updated in the appropriate enterprise resource planning (ERP) systems, and then continue on to the external supplier as a sales order.
Suppliers benefit, also, with Alliente's electronic enablement of their catalogs. Using Alliente as a channel to reach new customers, suppliers can reduce costs of sales, sales order processes and payments.
Since the genesis of Alliente Asia Pacific Limited four months ago, the Alliente Asia Pacific team has implemented Ariba Buyer solutions in six countries and also brought over 50 supplier catalogs online.
"We strongly believe the Asia Pacific market has a trade environment that supports rapid growth of e-commerce," said Lin. "We will remain sensitive to the unique nature of the Asia Pacific region and work with industry leaders and governments to evolve the indirect e-procurement market."
Alliente is currently developing new solutions to add value to the Asia Pacific electronic marketplaces and vertical exchanges. Plans are underway for a new call center in the Asia Pacific region to support multiple languages, in addition to the current operations support center in Colorado Springs, Colo., the headquarters of the company.
"Alliente has proven its ability to provide world-class, e-procurement solutions and strategies to our current global customers," said Spray. "Our Hong Kong office is a natural extension to continue our successful growth pattern."