eScout.com and Commerce One Align to Create B2B
Marketplace
eScout.com establishes premier MarketSite for independent businesses and community banks
powered by Commerce One technology
KANSAS CITY, Mo., and WALNUT CREEK, Calif., March 29 /PRNewswire/ -- Alexander C. Kemper, chairman,
president, and chief executive officer of eScout.com, and Mark Hoffman, chairman and chief executive officer of Commerce
One (Nasdaq: CMRC - news), today announced an agreement to establish the infrastructure for eScout MarketSite -- that will
combine the resources of Commerce One's business-to-business (B2B) trading community with eScout.com, the nation's
leading e-commerce company serving independent businesses and community banks. The eScout MarketSite, which is based
on the Commerce One MarketSite portal solution, will be operated by eScout for small businesses and community banks.
eScout will also join the Commerce One Global Trading Web(TM), the world's largest business-to-business trading
community. Commerce One will acquire a minority equity position in eScout.com.
The purpose of the agreement, Kemper commented, ``is to leverage the power of the Internet for America's small and midsize
companies.' Hoffman noted, ``eScout is a tremendous marketplace for small businesses. We highly value eScout's
extraordinary relationships through the community bank channel with the hundreds of thousands of small-to-midsize
independent businesses that supply the tier-one manufacturers of this country.'
Creation of the eScout MarketSite for independent businesses and community banks will enable all eScout members to sell to
one another and to purchase goods and services from one another. Additionally, they will be able to buy and sell to from
established members of the Commerce One Global Trading Web. As membership grows and eScout enables members to buy
and sell across the network, the transaction potential of the network can explode to over $1 trillion. Kemper commented, ``By
bringing together the small and midsize companies that are America's supplier community, we will create a network that offers
unprecedented extraordinary savings in manufacturing costs and tremendous opportunities to plan and market together.'
The Commerce One Global Trading Web(TM) is the world's largest business-to-business trading community. Comprised of
many open e-marketplaces running on the Commerce One MarketSite portal solution, the Global Trading Web provides
unprecedented economies of scale for buying organizations, suppliers, and service providers worldwide. Each global trading
portal is independently owned and operated by a leading market maker in a region or industry resulting in the greatest choice
for all trading partners.
``The Global Trading Web provides unprecedented economies of scale for buying organizations, suppliers, and service
providers worldwide. We believe that the addition of eScout adds further value to the network, which can be passed on to all
trading participants,' said Hoffman.
The businesses and banks currently involved in the rapidly growing eScout network will continue to see unparalleled
supply-chain management services in addition to communication and financial resources from eScout. Commerce One will add
to these services by providing access to a select group of open e-marketplaces. Kemper commented, ``We will be able to
offer our business and bank members unprecedented remarkable economies of scale. They will have access to e-commerce
applications and solutions previously only affordable available to the largest companies in the world.'
The eScout MarketSite is expected to deliver cost effective e-commerce solutions to enable accelerated trade by eliminating
technology barriers and creating efficiencies for eScout.com's community of independent business members with all of the
products, components and services necessary to trade in the Commerce One Global Trading Web. It will facilitate automated
real-time buying and selling, create new markets and maximize operational efficiencies, while creating new sales opportunities
for eScout.com members.
``In the past, companies have felt the need to merge in order to gain scale and have access to information and resources. This
relationship with Commerce One reduces the cost of information and provides access to valuable resources without forcing
those businesses to lose their independence or agility,' said Kemper. ``eScout is dedicated to empowering local and regional
businesses by creating the tools they need to thrive. The soul of this nation's economy lies in its community banks and
businesses. We are creating an e-commerce marketplace that gives every independent business the commerce, sourcing,
marketing, and business processing power of a Fortune 100 company, while preserving the special character and trust in
Americas communities.'
At present, eScout.com's rapidly growing membership includes 1,050 community banks, or more than eleven percent of
America's banks. These banks and the 3,500 other independent business members of eScout have a purchasing power of more
than $1 billion, just for the goods and services currently provided by existing eScout vendors. As the community banks launch
eScout to the more than 350,000 small-to-midsize businesses they serve, the potential purchasing power will grow to more
than $58 billion.
According to the Small Business Administration (SBA), companies of 500 employees or fewer account for 99 percent of all
U.S. companies. They are responsible for more than half of the private-sector gross domestic product and they create virtually
all net new jobs. The SBA reports that seventy-eight percent of small business owners identified the ability to reach new and
potential customers as their primary reason for having a Web site, and 35 percent of small business owners maintain a Web
site. However, the SBA also reports that only 1.4 percent of Internet use among small businesses is directed toward
e-commerce sales, and the most common barrier for small businesses in the adoption of e-commerce is the associated cost.
Kemper and Hoffman also announced their intention to create a Small Business Council. Kemper stated, ``We will provide
strategic assistance to develop additional business services for this new MarketSite with a special focus on our financial service
and independent business members.'
About eScout.com
eScout.com is the leading e-commerce company focused on creating e-business success in a trusted and secure e-marketplace
for independent businesses throughout America's communities. The community bank members of eScout sponsor their
customers in the network to provide every independent business the commerce, sourcing, marketing, and business processing
power of a Fortune 100 company, while preserving the trust and special character of Americas communities. In its first year of
operation, eScout.com's community-based e-commerce network grew to more than 1,050 community banks and 3,500
independent businesses, and is growing by more than 100 new members each week. In addition to an equity position held by
UMB Bank, investors include Mayfield Fund, Oak Hill Venture Partners, Tarrant Venture Partners, and others. eScout.com is
headquartered at 921 Walnut, Kansas City, MO 64106. Phone: 816-860-1932 Fax: 816-860-1360 Internet:
escout.com |
