e-Commerce

Joel Mangilit

BAYANTRADE

Joint Venture of Six Conglomerates Aboitiz Equity Ventures Ayala Corporation Benpres Holdings JG Summit Holdings Philippine Long Distance Telephone Company United Laboratories

AYALA CORPORATION

Speaker: Jaime Augusto Zobel de Ayala P100 M savings for buyers so far. P.O. processing time reduced from 14 to 2 days. 120 active buyers. 150 suppliers in 30 product categories:

Construction Security, laundry, janitorial. Fuel, chemical, vehicles.

AYALA CORPORATION

Value Added Services: e-Fulfillment through e-Payments (BPI) and e-

Logistics (TNT). e-Services

Integration of services with a company’s ERP system. Strategic sourcing by identifying and qualifying

suppliers. Business Intelligence because buyers and sellers are

closer to the market. Industry specific vertical portals.

Example is industrial construction.

AYALA CORPORATION

Construction Industry e-Bidding + e-Procurement = 10% savings Future Plans

Online Collaboration Project Management

Key Benefit Projects completed on time and on budget.

AYALA CORPORATION

Banking (BPI) Process efficiencies. 7 – 8 % savings on the purchase of computers

and paper. Trusted intermediary in the world of commerce.

JG SUMMIT HOLDINGS

Speaker: Lance Y. Gokongwei Purchasing Department (before BayanTrade)

30 people. Buying office supplies. Many different suppliers. Manual procurement.

Purchasing Department (after BayanTrade) Staff reduced from 30 to 6 people. Inventory reduced from 3 to 1 month. In less than 8 months, realized a 20% return on

investment.

PLDT

Speaker: Manuel V. Pangilinan Reorganization

IS, HR, Procurement (purchasing process), Finance. BayanTrade

Janitorial and security services. Computers.

Result Price was reduced by 10%. Increased process (purchasing) efficiency. Lowered inventory (just in time delivery).

PLDT

Speaker: Manuel V. Pangilinan Future

Currently there is P 2 Billion worth of trade passing through BayanTrade, but much more is needed.

Develop more intimate relationships with suppliers. Support Payment

FINAL NOTES

Within the first year of operation 5,000 purchase orders served to date.

Buyers benefit because bidding system will get the very best price from the suppliers.

In less than 3 months, e-Bidding has facilitated P 500M in on-line transactions.

Average of 16% savings for buyers. Suppliers benefit by:

Visibility in BayanTrade, opening new markets. Less sales effort is required (efficiency in the selling

process).