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The challenge
The most common internet-based procurement systems are modeled on the
catalog paradigm. As in their paper counterpart:
- suppliers must publish and maintain their product lists
- buyers must first locate, then review each of these lists to identify
potential supply sources
- buyers must then contact each of the suppliers in order to request quotations
In its simplest form, the catalog paradigm is a passive resource. The
buyer must be involved in every step of the search-and-contact segment of the procurement cycle. Statistics show
that over 65% of the resources devoted to the traditional procurement cycle are consumed by identifying and contacting
qualified supply sources.
The solution
tradeSys represents
a fundamental change to the current procurement model adopted by the electronic B2B community. tradeSys is the first e-application
to challenge the customary catalog approach by drastically reducing the buyer's involvement in the search-and-contact
segment of the cycle.
tradeSys is an active
system. Using a proprietary product cross-referencing algorithm, the buyer simply submits his request to the tradeSys RFQ Engine. The RFQ
Engine then sorts and distributes these requests to qualified suppliers. The clear advantages are:
- No redundant catalog maintenance by the supplier
- No buyer research requirements
- None of the product limitations of predefined catalogs
tradeSys now has
thousands of buyers and suppliers from over 95 countries using the system on a daily basis. These companies range
from small distributors and OEM's to blue chip industrial giants.
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