As one of the world's most traditional, off-line and fragmented sector, Ariba is making some headaway
sealing the paper and pulp industry.
SINGAPORE -- A global digital exchange for the pulp and paper industry in
Asia that aims to integrate e-Commerce in one of the world's most traditional,
off-line and fragmented sector is open for business, officials of Ariba, Inc.
and Andover E-pulppaper Ltd. (AEPP) reported. Keeping to the schedule of a
fourth quarter live, pilot trading site on the Internet, they announced the
pursuit of www.epulppaper.com, an online business-to-business (B2B) hub for the
pulp and paper industry. AEPP expects to see an initial captive US$300 million
per annum of transaction volume in an industry worth at least US$250 million to
pass through its site during the first year.
AEPP is a joint venture between ATD.com Pte Ltd, a wholly-owned subsidiary of
Alliance Technology & Development Ltd and The e-World.com Ltd. Its principal
place of business is in Hong Kong.
AEPP has selected the Ariba B2B Commerce Platform to fuel the www.epulppaper
quest to become the leading Asia-based megahub for the industry worldwide with
an annual transaction volume of around US$1 billion by 2003. Top officials of
project proponents AEPP, Ariba and Arthur Andersen inked the deal here a day
before some 1,700 high rank executives gathered for the Ariba Singapore Advisory
On-line marketplaces, otherwise known as B2B marketplaces, are fast becoming
model for e-Commerce. Industry analysts predict that over 50% of e-Commerce
transactions will be conducted on B2B marketplaces by 2004.
Ariba, a leading B2B e-Commerce platform and network services provider, was
one of the earliest technology platform providers to bring e-procurement and
marketplace solutions to market worldwide. Today, over 100 e-procurement sites
and over 400 exchanges worldwide run on the Ariba platform, establishihng Ariba
as the leader in the B2B e-Commerce space.
Rather than acting as a neutral dotcom marketplace between companies,
www.epulppaper.com is putting on-line the offline bricks-and-mortar businesses
of its associates and selected high-value partners. Its aim is to build critical
mass in a network of allied companies integrated on-line, dominating the
industry through inherent efficiencies and economies of scale.
Timothy Siddik, AEPP chief executive officer said “We will open our site
and our services to selected industry leaders. “Thanks to our business track
record, we understand their critical issues and challenges intimately, and we
believe our hub supplies the strategies and resources to resolve them in each
market segment,” Siddik said.
Siddik, also CEO of PT Suryamandiri Buana, one of the largest paper merchants
in Indonesia. He is founder and chairman of PT Zyrexindo Mandiri Buana, an Intel
local OEM PC manufacturer and Indonesia’s largest home-brand PC maker.
For now, AEPP focus on the lucrative packaging and container-board market.
“We export our products to West Coast in America, Middle East, Malaysia,
Singapore. We concentrate right now on packaging and containerboards which
contributes about 40 percent to the industry. Eventually we will move on to
office paper products,” he told the Manila Bulletin. “Our client base right
covers much of Asia such as Malaysia, Taiwan, Vietnam, Burma and the
Philippines, even Australia.”
During the development period, AEPP will focus on member registration,
content features development and initially simplified and traditional Chinese
versions of the site. Some US$5 million worth of investment in technology and
infrastructure has been pumped into the project. This includes the cost of the
hub’s systems which is being built on the platform of Ariba.
“All of a sudden I, as the buyer or as the seller, will have a personal
relationship with my trading partner and members on the marketplace. In the
present set up a fragmented relationship, there is no personal relationship or
whatsover being done. The Ariba platform technology now allow that relationship
to happen,” he said.
He added that the on-line marketplace now allows the seller and buyer to
discover variety of products and its prices in different countries.
Initially, he said they will get at least 20 of their allies or current
network of contacts from Indonesia, Hong Kong and China to join them on board.