Heinz, that's what I thought . So if you look at CMRC they have software to create a B2B ecommerce environment that GM will use with it's 100,000 suppliers and GM will do their 90 billion dollar a year business through CMRC's software, it may become a defacto standard as B2B ecommerce technology proliferates around the globe.
CMRC did a deal with BLS BellSOuth Last month to do the same thing for BLS's 1.2 million customers.
November 3, 1999
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E-GM Exec Sees Supply-Chain Pact Aiding Internet Efforts
By MARK YOST
LAS VEGAS -- Mark Hogan, president of General Motors Corp.'s (GM) e-GM unit, said that the supply-chain pact with Commerce One (CMRC) that was announced Tuesday will complement GM's ongoing Internet efforts.
"The Commerce One deal will help our back-end operations and make our supply chain more efficient," Hogan told Dow Jones Newswires in an interview Tuesday night. "Today, it's essential to profitability to have the most efficient purchasing model."
Hogan said that in developing its e-commerce initiatives, GM wants to closely mimic Dell Computer Corp. (DEL), giving buyers the ability to order customized vehicles through the Internet.
Hogan said that regardless of how e-GM evolves, franchise dealers will continue to play a key role.
"We're clearly going to develop a distribution model that works with them," he said.
Richard M. Lee, e-GM's North America region general manager, said that that strategy doesn't mean online shoppers will have to go to the dealership. Rather, he said, it's possible to order a car through GM's web site and have the dealer deliver both the final paperwork and the car to the consumer's home or office. "The buyer never has to step inside the dealership," he said.
Lee said that most GM dealers don't feel threatened by e-GM.
"The savvy dealers understand that the Internet is a valuable tool for increasing sales," he said. "And for the really savvy dealers, we can't move fast enough on developing our e-commerce strategy."
Hogan said that currently about 80% of vehicles are purchased from a dealer's lot. But "that'll change quickly," he said, because about 50% of all car buyers do research on the Internet before going to a dealership.
General Motors is featuring its online initiatives at the Specialty Equipment Marketing Association's annual trade show. That's in marked contrast to DaimlerChrysler AG (DCX) and Ford Motor Co. (F), both of which have highlighted their ability to equip sport utility vehicles and trucks with after-market specialty equipment.
In its first presentation at SEMA Tuesday afternoon, General Motors unveiled its plan to offer personalized Internet access to subscribers through its OnStar in-car information system. GM unveiled OnStar three years ago and has grown the business to about 100,000 users through its Cadillac brand.
Currently, OnStar allows users to call and ask a live operator for directions or summon police or an ambulance following an accident.
Under the initiative unveiled Tuesday, GM will expand OnStar to offer limited Internet access. The system will be voice-activated and a computerized voice will read e-mail, give stock quotes, directions and weather updates. Subscribers can also e-mail files, containing music or books on tape, to their OnStar system and then replay them in the vehicle.
"Today we are delivering on our commitment to show our production intent Web car and plan to have this Internet capability available to our customers next year," said GM President G. Richard Wagoner.
OnStar's Virtual Advisor will be available in "several models" beginning in mid-2000 and will eventually expand to about 50 models, he said. GM plans to charge users a monthly fee for Internet access.
Earlier in the day, GM announced that it was entering into the partnership with Commerce One to create an Internet-based business-to-business e-commerce network to link suppliers and dealers. GM had planned to brief reporters in Detroit Friday and make a formal announcement Monday. Wagoner said GM felt compelled to issue a press release Tuesday after Ford announced earlier in the day that it had entered into a similar supply-chain management pact with Oracle.
The new system will link suppliers and dealers with GM's $90 billion annual supply chain, Wagoner told reporters Tuesday. It will allow suppliers to get real-time information on the kinds of vehicles and options customers are ordering from dealers. It will also let suppliers buy raw materials directly from GM online. The network is expected to save GM about $100 per purchase order.
The network will be owned by GM and managed by Commerce One, Wagoner said. Suppliers will be charged an as-yet-undetermined access fee that GM will split with Commerce One. The network is expected to be operational by the end of this year or early 2000.
Late Tuesday GM also unveiled several new engines, including its new Duramax Diesel 6600 turbo V-8, which will be available in the 2001 heavy-duty Chevrolet Silverado and GMC Sierra pickup trucks.
Tuesday evening, GM's racing division unveiled several new models, including the Cadillac Northstar LMP and Chevrolet C5-R Corvette that will compete in the 24 Hours of Le Mans in June, the 2000 Chevrolet Corvette that will be the official pace car for the 24-hour endurance race at Daytona, Fla., in February, and the new Chevrolet Monte Carlo that will compete on the Nascar Winston Cup circuit in 2000.
- Mark Yost, Dow Jones Newswires; 313-963-7810 |
