DELL AND WORKS.COM TEAM TO DELIVER ONLINE PURCHASING SERVICE AND E-MARKETPLACE TO DELL'S SMALL AND MIDSIZE BUSINESSES
Works.com Receives Investment from Dell Ventures
AUSTIN, Texas -- June 27, 2000 - works.com, the leading Internet business purchasing service, and Dell Computer Corporation (Nasdaq: DELL), a world leader in Internet commerce and infrastructure, today announced that they are partnering to deliver an online purchasing service and e-marketplace of business products to Dell's small and midsize business customers.
Under the agreement, Dell is using works.com's purchasing service and e-marketplace to provide Dell's small and midsize business customers with a single point of control for managing purchases with multiple suppliers. The service, which helps customers increase control and reduce the cost of purchasing, is currently available to Dell business customers through the company's small business Internet site, www.delleworks.com, and through select Dell Premier Pages.
works.com also received an investment from Dell Ventures, the business group at Dell responsible for strategic investment activity and for incubating early-stage private companies. Exact terms of the deal were not disclosed.
"Industry analysts estimate that it costs businesses an average of $107 for every $27 purchase they make," said Bo Holland, co-founder and CEO of works.com. "By using works.com to deliver an online purchasing service and marketplace of indirect business products, Dell is helping its small and midsize business customers leverage the Internet to significantly reduce this cost by streamlining their purchasing processes and increasing control over spending."
"Dell has leveraged the efficiencies of the Internet to significantly streamline our own procurement practices, which has helped reduce our inventory to about six days," said Frank Muehleman, senior vice president and general manager of Dell home and small business group. "Using works.com to offer a similar service to our small and midsize business customers through Dell, is yet another example of how we're using expertise and industry-leading tools to help businesses be successful on the Internet."
Powerful New Tool for Business Buyers Dell's new online purchasing service and e-marketplace, powered by works.com, is accessible to business customers through www.delleworks.com, Dell's recently launched online service site for small business customers, and through Dell Premier Pages, which provide customized sites for select small businesses. Through the Dell e-marketplace, business customers have access to thousands of business products, including office supplies, cellular communication devices and plans, business machines, furniture, janitorial products and breakroom supplies. By the end of the summer, the marketplace will also provide Dell customers access to over 400,000 maintenance, repair and operations (MRO) products. Dell and works.com will work together to expand Dell's e-marketplace to include additional offerings, products and services. The two companies also plan to add new features to the purchasing service that improve processes around invoicing, reporting and personalized customer service.
When using Dell's new online purchasing service and e-marketplace, Dell business customers also have the option to join a Cooperative Buying Program that aggregates the buying power of member companies to secure volume discounts on business products they use most. works.com claims that this program can help small businesses cut up to 30 percent off their monthly supply bills*.
Today's news is part of an announcement by Dell of upgrades to its small business e-services. For more information, go to www.delleworks.com.
About works.com (www.works.com) works.com is an Internet business purchasing service that automates the purchasing process and gives small and midsize companies volume purchasing power. With works.com, companies can increase buying efficiency and control spending more effectively by automating and streamlining their purchase process -- from purchase request and approval to ordering, tracking, and reporting. works.com's wholesale marketplace offers discounts and fast delivery on 30,000 business products, including computer software and hardware, business machines, cellular communication devices and services, office supplies, furniture and maintenance and janitorial supplies. And, works.com cuts up to 30 percent off customers' monthly supplies bill by combining customer purchasing power to secure even deeper volume discounts on hundreds of their "most-used" products. Headquartered in Austin, Texas, works.com is funded by Bowman Capital, Hummer Winblad, Merrill Lynch, Presidio Venture Partners, and Trellis Partners. Bill Gurley of Benchmark Capital is a member of the works.com board of directors.
About Dell (www.dell.com) Dell Computer Corporation (Nasdaq: DELL) is the world's leading direct computer systems company, based on revenues of $27 billion for the past four quarters, and is a premier provider of products and services required for customers to build their Internet infrastructures. The company ranks No. 56 on the Fortune 500, No. 210 on the Fortune Global 500 and No. 3 on the Fortune "most admired" lists of companies. Dell designs, manufactures and customizes products and services to customer requirements, and offers an extensive selection of software and peripherals. Information on Dell and its products can be obtained on the World Wide Web at www.dell.com. |