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Media Contact COLECTRIC LAUNCHES "COLECTRIC eMARKETPLACE CONNECTION" Public Utility Consortium Launches First National Supply Chain Initiative JACKSONVILLE, FLA. - Colectric Partners, Inc. a non-profit collaborative of publicly owned utility companies, today announced the launch of a national supply chain initiative called Colectric eMarketplace Connection. The new program brings public utility buyers and suppliers together in an efficient and secure online marketplace and creates operating efficiencies and cost savings for all parties engaged in the eProcurement value chain. Open to suppliers of all sizes, Colectric's eMarketplace Connection provides online catalogue content, as well as optional modules enabling eProcurement and collaborative contract services, to publicly owned utilities who subscribe to the service. Currently, Colectric Partners, Inc. represents four large public utilities that collectively generate $3 billion in retail and wholesale revenue and spend more than $300 million each year on commodities ranging from transformers to office supplies. In addition to the four founding partners, numerous other public power utilities have expressed interest in participating in this eMarketplace for public power. "Research has proven how much time and money an eMarketplace can save companies across the board. Now with Colectric eMarketplace Connection, public utilities can create these incremental savings without having to invest millions of dollars in technology and IT support," according to Bob Alder, president of Colectric Partners. "Even those utilities who have ERP systems in place usually don't have their supplier catalogs accessible through a single online source. Colectric's eMarketplace Connection offers members flexible options for a secure, remotely hosted environment that provides online catalog content management, a sophisticated eProcurement system and collaborative sourcing opportunities for a fraction of the cost of creating a solely operated private system." According to a 2001 research report by the Aberdeen Group,
a leading IT market analysis firm, eProcurement reduces purchasing costs
and time. Companies who adopt online purchasing end up dramatically
reducing costs, shortening purchasing cycles, and driving improvements
to the bottom line. Aberdeen also estimates that the average eProcurement
system costs $1.3 million, plus three to four times more for the professional
installation and implementation service fees. While some eMarketplaces only serve to benefit the buyer community, Colectric has modeled their eMarketplace Connection system after the Tennessee Valley Authority's program that has been highly successful for TVA's 158 independent power distributors and their suppliers. "TVA's Distributor Procurement Partnership alliance has been very beneficial for Hughes Supply," according to Lynda Miller, Hughes Supply Branch Manager. "It has given us an opportunity to work more closely with our customers and provide them better service. It has also opened some doors with new customers. The eMarketplace order receipt is very efficient and represents a best business practice in transaction management." Because Colectric's eMarketplace Connection is Internet-based, subscribers do not have to purchase any additional hardware or software, which means public power operations at all levels of technology sophistication can rapidly and cost-effectively utilize state of the art technology. For suppliers, Colectric's eMarketplace Connection represents unprecedented access to what has traditionally been a highly fragmented, but fertile market of public utility buyers. Colectric's current members spend more than $300 million each year. About Colectric Partners |