To: The Phoenix who wrote (50528 ) 8/30/2000 1:12:58 PM From: Junkyardawg Respond to of 63513 Taken from Yahoo. Don't have the link yet but I will post the link when I find it.SAP-CommerceOne corner market By NIC HOPKINS 30aug00 CORPROCURE, the online mega-marketplace formed by 14 of Australia's biggest companies, will shortly hand CommerceOne and SAP a multi-million-dollar contract to supply its core technology platform. Sources confirmed the alliance would be chosen over two other shortlisted contenders, database and e-commerce software giant Oracle and internet business-to-business play Ariba. An announcement may come as soon as this morning. A key factor in the decision is believed to have been the fact that at least eight of the 14 partners in Corprocure use enterprise resource planning software provided by Germany's SAP. The three bidders had been the subject of a cutthroat beauty parade lasting several weeks, completing their demonstrations about a fortnight ago. "Negotiations were pretty fierce," said a source inside one of the losing bidders. Sources at Ariba Australia and Oracle Australia said they expected to be informed today of the appointment of SAP-CommerceOne, despite the headaches it will cause for Corprocure partner Telstra because of an alliance between CommerceOne and second-ranked local telco Cable & Wireless Optus. Corprocure was founded by a who's who of major corporations comprising Australia Post, BHP, Coles Myer, Foster's Brewing, Qantas, ANZ Bank, AMP, Pacific Dunlop, Telstra, Wesfarmers, Orica, Amcor, Goodman Fielder and Coca-Cola Amatil. The founding shareholders, which have a combined market value of more than $200 billion, hope to gain efficiency benefits of between 2 per cent and 8 per cent once by leveraging economies of scale in the procurement process. Melbourne-based Corprocure will be used as the online trading hub for about $4 billion a year the partners collectively spend on indirect goods and services. Corprocure is headed by interim chief executive Cameron Moroney, formerly of BHP, and chairman David Hodge, of Amcor. Funded with $14 million in seed capital, Corprocure is the first large-scale horizontal procurement marketplace in Australia. The project is expected to employ more than 100 people, to be cash-flow positive inside 18 months and to be fully functional after two years, with total development costs expected to reach $50 million. Online news service ITNews.com.au reports that, following SAP-CommerceOne's appointment, the Corprocure technology selection process would still have "some way to travel". The foundation of Corprocure marks an historic step by Australian big business, signifying that they have been sold on the concept of virtual marketplaces and are willing to invest in return for long-term savings. Some observers believe the e-procurement alliance between C&W Optus and CommerceOne could prove a stumbling block because of C&W Optus's rivalry with Telstra. Earlier this year C&W Optus secured the exclusive local rights to CommerceOne's B2B e-marketplace. Telstra and SAP collaborated last month to create "MySAP powered by Telstra". Founding partners include National Australia Bank, Qantas, American Express, Transfield, TNT and CSR.