LONDON (September 7, 2000) --The WorldWide Retail Exchange (WWRE),
the world's leading retail e-marketplace, today announced that
it has completed a series of online pilot auctions that successfully
demonstrated the company's technology and positioned it to begin
a more permanent and comprehensive schedule of auctions.
"We are now operational," said newly appointed WWRE CEO Colin
Dyer. "What started out as an idea only six months ago is now
up and running, saving money for retailers, suppliers and customers.
We are truly moving at the speed of the Internet.
"The pilot auction program consisted of three auctions hosted
by individual retailers and two collaborative indirect auctions
hosted by several member companies. In all five auctions, suppliers
from around the world were able to bid online for contracts on
items ranging from corned beef to office stationery.
The auctions were the first live tests of the WWRE's new technology.
In June, the WWRE announced a partnership with IBM, Ariba and
i2 to provide the technology platform for the Exchange.
U.K.-based retailer Tesco hosted the first auction Aug. 14. The
three-hour-long auction for corned beef attracted seven suppliers
and five bids. Suppliers were able to see and place competing
bids for the product, but identities were kept confidential. Tesco
says it realized a significant savings from the auction and trimmed
the purchase time from three days to three hours.
"We are very happy," said Barry Knichel, director of supply
chain research and development for Tesco. "The technology worked
flawlessly, we were able to save time and money, and the suppliers
we worked with expressed a great deal of enthusiasm for the future
of the project.
"The Netherlands-based Royal Ahold conducted a 24-hour auction
for tiger shrimp Aug. 16-17. The auction attracted suppliers from
around the world. The company says it realized a significant savings
from the auction and cut the process from one week to one day.
"Speed is the hallmark of this process," said Ruud Van Der Pluijm,
IS and IT program director at Royal Ahold. "With more transparency
between buyers and suppliers, like we have with the WWRE, we found
we were able to get instant answers to otherwise difficult business
decisions."
U.S-based Target Corporation conducted the third and final individual
auction Aug. 23. The one-hour auction to provide plastic clothes
hangers attracted seven suppliers.
"The Exchange helped us realize significant savings," said Tim
Curoe, director of B2B at Target Corporation. "With petroleum-based
product prices at a 10-year high, the rising price of plastic
hangers had us concerned. But with the online auction we were
still able to realize a savings."
The WWRE also conducted two indirect collaborative auctions for
retailers in Europe and North America. On Aug. 29, 11 Exchange
members from the United States hosted an auction to purchase copy
paper. The auction attracted seven suppliers. On Aug. 31, six
European members hosted an auction for office stationery that
attracted five suppliers.
The indirect collaborative auctions helped suppliers realize
productivity gains by combining the orders of several retailers
at once. The result was a lower cost for retailers, which translates
into lower prices for consumers.
The WWRE (www.worldwideretailexchange.org)
is a Web-based business-to-business exchange designed to facilitate
and simplify trading between retailers and more than 100,000 suppliers,
partners and distributors. Consisting of leading retailers from
Africa, Asia, Europe and the United States, the WWRE is open to
all suppliers and retailers who wish to use it. To date, the WWRE
currently includes members who have combined sales of U.S. $553
billion or Euro 614 billion.
Today, WWRE membership includes: Albertson's (U.S., NYSE: ABS),
Auchan (France), Best Buy (U.S., NYSE: BBY), The Boots Company
(U.K., LSE: BOOT.L), Casino (France, ParisBourse: 12558), Cora
(Belgium, France, PSE: 06176), CVS/pharmacy (U.S., NYSE: CVS),
Dansk Supermarked (Denmark), Dairy Farm International (Hong Kong,
SES: DAIR.SI/Reuters, DAIRYNEW SP/Bloomberg), Delhaize Group (Belgium,
BSE: DEL), Dixons Group plc (U.K., LSE: DXNS), Edeka (Germany),
El Corte Ingles (Spain), Gap Inc. (U.S., NYSE: GPS), J.C. Penney
(U.S., NYSE: JCP), Jusco (Japan, TSE: 8267), Kesko (Finland, HEX:
KES), Kingfisher (U.K., LSE: KGF), Kmart Corporation (U.S., NYSE:
KM), Longs Drugs (U.S., NYSE: LDG), Marks & Spencer (U.K., LSE:
MKS), Publix Super Markets (U.S.), RadioShack Corporation (U.S.,
NYSE: RSH), Rite Aid Corporation (U.S., NYSE, PSE: RAD), Royal
Ahold (The Netherlands, NYSE: AHO), Safeway Inc. (U.S., NYSE:
SWY), Safeway plc (U.K., LSE: SFW.L), Schlecker (Germany), Seibu
Department Stores Ltd. (Japan), Supervalu Inc. (U.S., NYSE: SVU),
Target Corporation (U.S., NYSE: TGT), Tesco (U.K., LSE: TSC.OL),
Walgreen Co. (U.S., NYSE: WAG), Woolworths (Australia, ASX: WOW)
and Wooltru Ltd. (South Africa, JSE: WLO).
Media Contacts:
Helen Craft (Europe)
Shandwick International
44.207.950.2871
hcraft@shandwick.com
Teresa McFarland (U.S.)
Shandwick International
952.346.6198
tmcfarla@shandwick.com
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