Purchasing Innovation. Value Proposition

Transcription

1 Purchasing Innovation Value Proposition

2 Company Overview imarketkorea is Korea s leading and largest MRO B2B e-marketplace with its record transaction volume, advanced information technology and strategic sourcing know-how. Milestone Core Competency imarketkorea, Inc. Established MRO & Construction Material Procurement Service B2B Auction Service Consolidated Sales Volume USD 454 Mil Korean representative of 1 st APEC Global B2B Interoperability Project Awarded Ministry of Commerce,Industry, Energy s Digital Award (e-commerce) Awarded Top Export Award (B2B MP, USD 3 Mil) Awarded Ministry of Info and Communication s EC Award (B2B MRO) First B2B MP to attract investment (USD 4.1Mil) from The Korea Development Bank Korean representative of 2 nd APEC Global B2B Interoperability Project Mobile e-marketplace Service Awarded Top Export Award (B2B MP, USD 10 Mil) Korean International Trade Association Korean representative of 3 rd APEC GLOBAL B2B Interoperability Project PRICE Sourcing Know-how Customer Oriented Solution Volume Competitive Price based on Samsung Group s purchasing volume (USD 800 Mil) Experienced Sourcing Know-how of Sourcing Specialists Customized Solution In-house solution development Sales Volume st Half Total (USD) 1.29Bil 838 Mil MRO 350Mil 313 Mil Construction 940Mil 525Mil Market-share in Korea 2003 MRO 28% ($0.38bil/$1.36bil) Construction 76% ($74.7Mil/$98.3Mil) <source: Korea National Statistical Office >

3 Major Clients IMK provides MRO procurement services to 150 clients and Construction Material procurement (Matplaza) to 340 clients. Manufacturing Major Clients Public Organizations Dongkuk Steel Mill Union Steel Mfg. Haitai Confectionery and Foods Aekyung Industrial Yuhan Kimberly Samsung Group Distributors Tesco MegaMart Aekyung Department Store Financial Services Bank of Korea Korea Minting and Security Printing Corporation Small Business Corporation The Export-Import Bank of Korea Woori Bank Koram Bank ChoHung Bank Educational Institutes DaeGu Bank Bridge Securities ING LIFE Samsung Advanced Institute of ING Bank Technology Samsung Economic Research Institute Sookmyung University

4 Broad Array of Products Currently, imarketkorea offers three hundred ninety thousand items and the number of items on the e-catalog continues to increase. MRO Content Equipment Material Equipment Spare Maintenance and Repair Items Operation Support Item Office Product, Supplies Info. System, Supplies Rotary Stationary Electrical HVAC Material Handling PCI Workshop Oil Drilling Laboratory Instrument. Structural Chemical Insulation Refractory Building Spare Parts OEM Generics Accessories Kits/Sets Bearings Fastener Gasket/Seal Piping Fitting Elect. Item Paints/Finish Power Trans. Welding Supplies Cable Tool Safety Cleaning Lighting Waste Art & Drafting Writing Instrument. Office Furniture Office Equipment Media Software Storage Devices Network Systems Multimedia

5 Multiple Services imarketkorea combines the right tools and services fit to item specifications and delivers significant cost savings via fair and transparent purchasing process. e-catalog Procurement Frequently ordered/diverse items Co-purchasing between various customers Non-strategic item purchasing Continuous long term transactions Real-time order tracking Increase profitability & reduce total cost Total Cost of Ownership & Efficiency contract party issues tax invoice : imarketkorea website : Reverse Auction Spot purchasing of large volumes Full bidding of project based individual company purchasing Strategic management of Core items Concentration on Price Management Transparent purchasing for government & public organizations Unit price reduction and transparency contract party issues tax invoice : successful bidder website : Flexibility in selection between catalog purchasing and reverse auction (bidding) module meets buyers needs and preferences Leverage Purchasing Method according to Item Specifications

6 System Architecture imarketkorea is the only Korean MRO procurement company that supports both ASP service and ERP I/F that offers user convenience. Local PC GroupWare Workflow HR, Accounting System Used Budget Records ERP (SAP, Oracle.) Legacy Purchasing System User, Department, Budget Buyer Single Sign On User Login Approval Request imarketkorea Marketplace Supplier Approval Status SMS Network / ASP businesses PO, GR, (RFQ) PO Records, GR Records Invoice Records Carriage Request Order Tracking TPL System (carriage) Financial System Account Details GR Records AR/AP Details PO, DO, GR imarketkorea Financial System Supplier System

7 Operation Flow imarketkorea offers buyers fundamental functions such as Purchasing Budget Management, Internal Approval Support, and Inventory Management. Procurement Process Buyer Order Search Purchasing Budget mgt On line approval Product Registration Storage & Inventory mgt. Goods Receipt Notification One-stop Settlement Closing Payment Market Place Order Notification Catalog Supplier Info Price Info Delivery Info Order Tracking Self Delivery Delivery Service Delivery Notification Payment Supplier Pick-up

8 Benefits of MRO e-mp Considering the domestic MRO market situation and the characteristics of MRO, the benefits of B2B e-marketplace are clear and unquestionable. Raw and Subsidiary material Characteristics of MRO Total Purchasing Cost MRO* 85% 15% MRO cost *Indirect Material used in operating, maintaining and repairing equipment 40% 60% Frequent Order/ Small Volume Severe Competition Process Cost Characteristics of MRO High Procurement Cost Paperwork Intensive Lack of Strategic Management-Non Core item Necessity of MRO B2B e-mp MRO Market in Korea Complexity of Supply Chain Small scaled Manufacturers: Lack of standardization Lack of standard(rule) in fixing price Complex supply chain compared to the size of the market. Lack of information flow among User, Buyer and the Supplier. Inefficiency in Management Lack of standardization in categorization, specification, item code Lack of unified management among Buyers. Centralized purchasing is infeasible due lack of data warehousing.

9 Benefits of Total Outsourcing of Purchasing imarketkorea reduces purchasing cost and streamlines procurement process. Benefits of Centralized Purchasing Efficient internal Purchasing Process Category Management Budget Control Paperless working environment Innovation in Management Centralized & Web Based Buying Transparent purchasing Bargaining Power Accumulation of Strategic Know-how Transparency / Fairness Achieve fair and transparent purchasing practices via third party. Service Satisfaction Efficient purchasing process through standardization After Service follow-up Reduce Direct Purchasing Cost Reduce MRO purchasing cost by 5 ~ 15 % - Total Out-Sourcing (reduce 13~15%) - Category Outsourcing (reduce 8~10%) - Selective Outsourcing (reduce 8%) Reduce Indirect Cost Assimilate price increasing factor of overseas manufactured goods Save labor cost Reduce Development Cost of Separate Purchasing System Enhance Purchasing Process Streamline purchasing process with implementation of e-marketplace Simplify Workflow (Ordering, G/R Mgmt) Reduce Lead Time Accumulate e-business Experience Build working experience with Internet Encourage use of Internet and computer within corporate culture Develop new e-business opportunities Learn fair and transparent purchasing practices via third party purchasing expert organizations

10 Value Proposal imarketkorea s MRO Total Outsourcing Service will free your resource to focus on core business activities and provide significant savings and operating improvements. MRO Total Outsourcing Concentration on Core Competency Stakeholder Value Enhancement Corporate Competitiveness Process Improvement New Value Creation Corporate Transparency Purchasing Cost Savings