A second major business to business (B2B) e-procurement exchange for the Australian marketplace including an auction system will launch before Christmas.
Cyberlynx Procurement Services (Cyberlynx), is jointly owned by the Commonwealth Bank Group, Woolworths, Lion Nathan, EDS Australia and the Telecom New Zealand Group, which includes TCNZ Australia and AAPT. The group expects to spend less than $20 million to get it operational.
Russell Scrimshaw, Head of Technology, Operations, Property for the Commonwealth Bank Group said the venture is not a competitor to corProcure, an e-procurement superportal for 14 of Australia's biggest enterprises.
"We came up with this model to save us money, however we will be competing with corProcure for partners, but I don't see exclusivity deals with suppliers. I don't think we will be seeing too many other exchanges occurring in Australia due to our size."
Cyberlynx, which hosts the solution, focuses on indirect product and services such as office supplies and equipment, and is currently sourcing suppliers, services categories and partners.
The hub, based on an Ariba platform, Scrimshaw said was chosen for its proven and well-tested ability in the exchange marketplace. "However, as long as the user is connected to the Internet, they will have access to the process; it doesn't matter what technology platform they have."
Scrimshaw said he expects the B2B initiative to save the Bank more than $250 million over the next five years, and that significant costs savings had occurred out of the re-engineering of their procurement structure and process.
Tony Henshaw, President of EDS e-Solutions Asia Pacific said he expects savings of around $1 million in procurement costs over the next year.
"We also expect multiple procurement processes to merge into one, a reduction of duplication, and a reduction in processes through accounts payable."
Phil Warburton, Managing Director, Technical for Lion Nathan Group sees the exchange as taking a "stake in our future". He expects savings in the vicinity of 7 per cent of the Group's indirect spend.
"This exchange is absolutely core to our strategy, it is not a sideline," said Max Morison, Value Add Manager for Telecom New Zealand Australia.
The e-procurement software has been deployed throughout the Commonwealth Bank Group, Telecom New Zealand and AAPT and is currently being piloted.