ICG Commerce Launches First Canadian Online Reverse Auction
Leading global e-procurement services provider helps Ontario Store Fixtures achieve significant savings leveraging advanced B2B and e-procurement strategies. ***Important Notices related to ICG Commerce*** ICG Commerce is not in any way associated with ICG Communications. Further, while Internet Capital Group (NASDAQ: ICGE) is a holder of ICG Commerce stock and ICG Commerce is a member of the Internet Capital Group partner network, ICG Commerce and Internet Capital Group (sometimes referred to as ICG) are separate and distinct operating companies.
PHILADELPHIA - Thursday, December 21, 2000 - ICG Commerce today announced that it hosted its first-ever Canadian
online reverse auction, helping Ontario Store Fixtures (OSF), the leading North American manufacturer of complete retail
store interiors, negotiate contracts for one of its major raw materials used in the manufacturing of retail store fixture
products. OSF and ICG Commerce leveraged ICG Commerce's advanced B2B e-procurement technology aimed at delivering
online Auctions results on an accelerated basis.
ICG Commerce's RealAuctionSM service -- one of ICG Commerce's comprehensive end-to-end procurement services -
- combines the deep strategic sourcing and supplier management experience of the company's Auction Team and
powerful, integrated software to enable ICG Commerce customers, buyers and suppliers to participate in real-time
bidding through dynamic, interactive, online auctions.
The successful completion of this pilot Auction in Canada was viewed as a demonstration of OSF's commitment to
taking a leadership position in e-business in the store fixtures industry. ICG Commerce views this as a significant
milestone in helping usher in an era of results-driven e-commerce and specifically, leveraging Auctions, here in
Canada.
The Ontario Store Fixtures auction featured 10 suppliers bidding on a contract to supply raw materials. ICG Commerce
worked with OSF to establish requirements and baseline price, and qualify and register suppliers through a rigorous
selection process. Additionally, the team ensured suppliers were well prepared to participate in the auction process and
the live event.
Prior to this event, 8 of the 10 suppliers selected to participate in the auction had never participated in an online auction
before. Working together with suppliers throughout the entire process and helping them to prepare for the online event
itself were critical to ensure the success of the project and to promote competition on a level playing field. During the
real-time bidding event, over 460 bids were made. The process yielded year over year savings of greater than 5% for
OSF.
"ICG Commerce's experience made the difference, not only in exceeding our savings expectations," said Dan Snider,
vice-president of Logistics, Ontario Store Fixtures, "but also in their dedicated auction team supported our procurement
staff throughout the entire process. They did a tremendous job in bringing top suppliers to the table, engaging them in
the RealAuction process, sourcing our complex requirements, and helping us to strategically select our supply partners,
using a total value process. We are extremely pleased with the results."
"Online auctions are an excellent procurement tool for bringing buyers and suppliers together, reducing traditional
sourcing cycles, and driving down costs," said Andrew LeSueur, vice-president of ICG Commerce's RealAuctions
group. "We are the only auction provider resident in Canada to offer a proven combination of Internet-based
technology, strategic sourcing services and supplier management skills to ensure our customers like OSF achieve the
best possible results."
ICG Commerce provides comprehensive e-procurement services to help companies streamline their purchasing
processes. ICG Commerce can effect the complete range of procurement strategies for its customers, including online
catalogs, spot-buys, eRFPs/eRFQs, and auction services.
According to Aberdeen Research, Internet-based reverse auctions can reduce traditional manual sourcing cycles from
four months to one month or less, and reduce price of materials and services from 5% to 20%. ICG Commerce's
RealAuctionsm offering was designed to enable companies realize this opportunity.
ICG Commerce RealAuction solution features include:
Ease-of-use; no software and no upfront capital investment required
Dedicated account management teams to deliver sourcing and supplier management services
Global supplier participation
Dynamic real-time bidding
Instant messaging so buyers can get immediate supplier feedback
Post-Auction support to ensure total value: quality, delivery and customer service
About ICG Commerce
ICG Commerce is the world's first comprehensive online procurement services provider for businesses. Leveraging its
wealth of supply chain management, purchasing and strategic sourcing expertise across multiple industry groups, ICG
Commerce delivers comprehensive, tailored services built around a flexible, Internet-based platform that requires
minimal start-up cost and time and no software purchase or installation. ICG Commerce can effect the entire spectrum
of purchasing strategies, including aggregated buys, portals and exchanges, hosted auctions, eRFQs/eRFPs, spot buys
and catalog purchases. The company is uniquely positioned to help customers streamline all of their procurement
decisions and processes and to effect substantial savings and efficiencies. ICG Commerce is a member of the Internet
Capital Group (NASDAQ: ICGE) network of partner companies, and is based in Jenkintown, Pa. For more
information, access the company's Web site at www.icgcommerce.com.
About Ontario Store Fixtures
Ontario Stores Fixtures is the leading North American manufacturer of complete retail store interiors. Understanding
the development process, logistics and customer needs, Ontario Store Fixtures can add value from concept through
installation, they have the tools necessary to design, collaborate and inform. The company's mission is to continually
increase their clients' productivity by delivering store fixturing excellence through innovation, advanced technology
and superior craftsmanship. For more information, access the company's Web site at www.osfinc.com.
Contacts:
Dan Snider
VP Logistics
Ontario Store Fixtures
416-644-2310
dsnider@osfinc.com
Karen Wilcox
Cohn & Wolfe, for ICG Commerce
(404) 880-5229
Karen_Wilcox@cohnwolfe.com
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