Newark joins Ariba Supplier Link program
Barbara Jorgensen
June 21, 1999, Issue: 1165
Section: News
techweb.com
In the ever-changing electronic-commerce landscape, distributors seem to be continually hedging their bets on just which solution customers will use to reach them.
Last week, Newark Electronics became the latest distributor equipped with its own e-commerce offering to enter into an e-commerce partnership. The Chicago-based catalog outfit became one of 50 partners in the Ariba Supplier Link (ASL) program, an Internet- and intranet-based e-commerce process that matches buyers with suppliers.
For existing Newark customers, the pact will provide a means to source small quantities of product over the Web, via an intranet, rather than through EDI, said Leigh Townley, Newark's assistant vice president and general manager of electronic commerce. The system further streamlines the process by automatically qualifying and eliminating suppliers based on certain criteria determined up front by the customer, thereby reducing the customer's vendor base.
"The structure will help automate existing business," Townley said. "Much of the structure conforms to EDI but opens users to the Internet to place an order. The order can be placed on the Web, but its output could be through EDI. We see it as a way of bringing more buying functionality to the desktop.
"It used to be that an engineer would design in a part and take it to a purchasing agent, who had to find that part and determine the best price," she said. "In this environment, the engineer can design in a part, and within the criteria [set by the company], can place an order."
Newark's participation in the Ariba network also increases the likelihood that Newark will show up as a preferred supplier for electronic components. "By making an array of electronic-component products readily available to buying organizations using Ariba e-commerce solutions, Ariba and Newark Electronics will provide our joint clients with the opportunity to conduct business more efficiently ... on the Internet," said Dave Rome, vice president of marketing at Ariba Inc., Sunnyvale, Calif.
Because of the process' streamlining effect on the supplier base, Newark has experienced 20% to 30% growth, on average, when it has entered into programs such as the Ariba network with customers, Townley said.
Newark joins a host of other distributors offering customers a multitude of options on the Internet. In addition to its own site, Marshall Industries hosts the ENEN Network, SpotMarket, @once, and its MACROlink intranet, and plans to establish more sites in the future.
Marshall is also a fulfillment partner in ChipCenter, a joint venture that includes Arrow Electronics Inc. and Avnet Inc.
Avnet itself offers online ordering at its Web site, and recently formed a partnership with Nu Horizons Electronics Corp. VEBA's Wyle Electronics subsidiary, also reported to be looking at ChipCenter, has formed an e-commerce pact with EDA-tool vendor OrCAD Inc. (see related story above).
It appears that the Newark catalog operation will work well with Ariba's MRO business model, said Dan Nissanoff, president of Microcom Technologies Inc., a New York-based independent distributor. "What Ariba allows you to do is consolidate the way you buy the products you need for support functions; so for 'one-off, two-off' purchases for maintenance or repairs, it's a good fit," he said. "They're the leader in the indirect goods-purchasing solution."
Copyright ® 1999 CMP Media Inc.
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Best of luck Rob, thanks for posting your insight.
regards,
dkg |
