MRO e-Marketplace concentrating on maintenance of
     suppliers through SRM

November 1, 2006

MRO B2B e-marketplace companies have been looking at effective suppliers management recently, including SRM system establishment.

According to an industry source, iMarketKorea developed the SRM solution of Smart-i last year, and have carried out systematical supplier maintenance, while Serveone has embarked on the maintenance of 5000 affiliates through its self-developed suppliers evaluation system. Recently, EN2B has applied an SRM solution developed by Prompt, and has started operating this system. Affiliates maintenance has become an important strategy in the MRO e-marketplace.

Such movement is due to the fact that small to medium-sized affiliates may number anywhere from 4000 to 10000, which means systematic maintenance is required, as well as submission, storage and quality maintenance of suppliers to control the quality of the whole MRO supply service.

iMarketKorea (CEO Man-Young Hyon) introduced the SRM operation method back in 2003, and has developed Smart-i, a solution based on such methods, for management of its suppliers system.

Smart-i classifies 4000 suppliers depending on their characteristics. It places its emphasis on maximization of competitiveness in the aspects of price, quality, service and technology. In particular, objective affiliate evaluation and continuous development of operation have expanded the pool of suppliers, and increased the fairness level of the business. CEO Hyun said, "The introduction of Smart-i enhanced the overall submission lead time of suppliers by 40%, and prompt submission by 10%."

EN2B has also applied a supplier evaluation method and embarked on an SRM solution process. The SRM solution which they introduced is a supplier evaluation method jointly developed by EN2B and Accenture, and made by B2B Solution Company prompt. The system has a supplier evaluation system, specifications, management policy management including supplier related management functions and real-time supplier selection functions. EN2B said "with this system, we can evaluate suppliers systematically. We think that a more strategic and transparent purchase system is possible, and we will compete for the MRO e-marketplace."

Serveone (CEO Tae-Oh Kim) has continuously developed its self-made suppliers evaluation system since 2002, and has carried out the systematic management of 4000~5000 primary clients. In particular, since the establishment of the SI (Supply Integration) team at the beginning of the year, they have integrated the classification department and single client or regional unit purchases, embarking on an efficiency review. Also, with regards to standards for evaluating affiliates, the method has been changed to give extra weight to customer satisfaction from contributions to Serveone since September, and has received favorable reviews.

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