"We have quite an extensive e-commerce and logistics organisation, and this gives us access to and ownership of an eprocurement market, which fits in very neatly with our strategy." said Gary Highland of Australia Post.
corProcure links buyers with their suppliers to trade electronically, and also aggregates demand from buyers, who are able to streamline their procurement processes and achieve lower prices through aggregate bulk buying. Suppliers benefit by increasing sales volume and reducing processing and acquisition costs. corProcure also use a range of professional services to add value, including tendering, reverse auctions and support services.
Having already achieved some productivity gains through its association with the B2B vendor, Australia Post believes it has made a wise business move by making its relationship with corProducre more formal. "We have already achieved savings through corProcure, and we have further savings from orders that are in place, and these savings outweigh the investment in the company." said Highland. The aim is to make corProcure profitable in its own right. Australia Post believe that now corProcure has only one owner, it will be easier to drive purchasing through it's marketplace and enables a strong sense of direction.
"We have given an undertaking to the original shareholders that they will be offered access to corProcure on terms which are no less favourable than those they enjoyed when they were shareholders." said Highland. "We are seeking to communicate with other corporations to expand the business." he added.
