CML`s:Major Aust.Co`s Partner to Form Multiple Ind.Elec.Mkt.
Wed 05 Jul 2000
Published: Wed 05 Jul 2000 10:37:45
Document No: 164063
Document part: A
Market Flag: N
COLES MYER LTD. 2000-07-05 ASX-SIGNAL-G HOMEX - Melbourne +++++++++++++++++++++++++ MEDIA RELEASE The intention to form Australia's first multiple-industry business to-business e-marketplace - corProcure - was announced today by fourteen of Australia's leading companies. The companies, each of which is a founding shareholder in corProcure, include Amcor, AMP, ANZ, Australia Post, BHP, Coca-Cola Amatil, Coles Myer, Foster's, Goodman Fielder, Orica, Pacific Dunlop, Qantas, Telstra and Wesfarmers. Together, these companies intend to spend more than A$8 billion on indirect goods and services using corProcure over the next two years. The total value of indirect spend in Australia exceeds A$300 billion annually. A Memorandum of Understanding was signed today, and a shareholders' agreement is expected to be signed in 45 days. corProcure will be an independent, stand-alone, internet-based indirect goods and services marketplace open to all existing and new suppliers. The Founding Shareholders will share the investment cost of e-procurement infrastructure. In a joint statement, the Founding Shareholders said that by seamlessly connecting thousands of trading partners, regardless of size and location, corProcure is expected to deliver new transaction efficiencies and standards as well as significant business networking opportunities across the supply chain that will significantly benefit both suppliers and buyers. "The number of leading companies coming together from a range of industries and business sectors is unmatched in Australia's business- to-business marketplace. This is a significant and far-reaching partnership of major buyers and sellers that will utilise technology to extract and deliver wide-ranging benefits for all parties. "corProcure is an initiative that will transform procurement practices in Australia, create new value for buyers and suppliers and give all participants an improved competitive footing in the regional and global economy. "Suppliers will gain access to a much larger customer base, will be able to reduce administration and customer acquisition costs and better manage product demand processes, and will eliminate time-consuming paperwork and tracking. Buyers will benefit from simplified ordering processes and improved order accuracy. "corProcure is committed to the development of an open-platform, standards-based, multiple-industry regional trading network that delivers real value and benefits to all participants and stakeholders." Examples of goods and services traded through corProcure may include: office and cleaning supplies, fuel, energy, telecommunications, facilities management, human resources services, legal services, promotions and advertising, computer services, insurance and capital expenditure items. Each founding shareholder will be represented on the board of the new company. A Team Leader, Business Establishment has been appointed and a search will be launched this week to recruit an independent management team. Proposals for technology infrastructure will also be solicited in the next few weeks. It is expected that transactions will begin by September this year. In recognition of the importance of suppliers to the success of corProcure, the Founding Shareholders said they would discuss the company's proposed e-procurement strategy and logistics directly with suppliers over the next several weeks. A corProcure website, launched today, contains information for suppliers, and other interested parties. The web address is http://www.corprocure.com.au. The Founding Shareholders have not disclosed the amount of expected savings in transaction costs. For further information contact: Sally Abbott or Rupert Hugh-Jones 03 9289 9555 Contact details for corProcure Founding Shareholders. Amcor Kerrie Lavey Orica CORPORATE AFFAIRS OFFICER Kate Shea Tel: 03 9226 9004 PUBLIC AFFAIRS MANAGER 03 9665 7256 Peter Brown MANAGING DIRECTOR Pacific Dunlop Amcor Australasia Anton McKernan Tel: 03 9811 7135 CORPORATE AFFAIRS OFFICER Qantas AMP Justin Kirkwood Telstra CORPORATE MEDIA MANAGER Selena Adams 02 9257 7473 PUBLIC AFFAIRS MANAGER Tel: 02 8255 2687 ANZ Australia Post Wesfarmers Stephen Walter CORPORATE AFFAIRS GROUP Tel: 03 9204 7135 BHP Mandy Frostick MANAGER MEDIA RELATIONS 03 9609 4157; Mobile: 419 546 245 Dr Robert Porter VICE PRESIDENT INVESTOR RELATIONS 03 9609 3540; Mobile: 419 587 456 Coca-Cola Amatil Alec Wagstaff CORPORATE AFFAIRS MANAGER, Australia Tel: 02 9259 6571 Coles Myer Greg Price MANAGER, MEDIA RELATIONS Tel: 03 9829 6273 Foster's Mary Reikert NEW MEDIA ADVISOR Tel: 03 9633 2277; Mobile: 0418 313 478 Goodman Fielder Robert Hadler CORPORATE AFFAIRS DIRECTOR Tel: 02 8874 6095, Mobile: 4017 00 000