Sciquest.com B2b Market Place

Business SciQuest.com’s B2B E-Marketplace Presented By: Vijay Mangal Joydeep Das Anuj Gupta Saurabh Sharma

SciQuest.com  

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Founded in 1995s Offered scientific and laboratory products on website Founded by Peyton Anderson, Scott Andrews and Keith Gunter former sales professionals for Baxter scientific Product Company launched an informational website and product-sourcing service in 1995

Cont’d… 

Its plan was to develop e-commerce website.

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Partnership with leading software solution providers such as IBM, Oracle, Ariba, and Commerce One.

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The company needed to build the e-marketplace from scratch, including back-end transaction process such as fulfillment an accounting.

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Company evaluated many e-commerce product in the market, finally settling for IBM’s offering in 1998.

Need of the Technology 

Professionals were frustrated with the traditional paper-based product ordering process

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Suppliers used two sales channels – traditional distributors and direct sales

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This sales channels were often expensive

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Then launched a business-to-business e-market place in1998

About the Technology 

In September 1998, SciQuest implemented the OBI compliant Net. commerce solution

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At the heart of SciQuest’s online catalog was DB2

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It helps to eliminate much of its customers’ procurement paperwork

SciQuest B2B E-Marketplace Search multiple Suppliers, creates One purchase order

Scientific buyers

SciQuest.com Sends consolidated Invoice to customer SciQuest.com Suppliers bill SciQuest.com Order delivered electronically

Supplier’s Ordering System

Items shipped “directly” to customer

Supplier’s Inventory

Cont’d… 

SciQuest used RS/6000 enterprise server model H70 server and the HTTP server

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Net.Data macros and JavaServer Pages(JSP) helps to delivered the results to the user’s web browser.

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MQSeries helped SciQuest to dramatically reduce development time and helped in transaction between suppliers and receivers.

SciQuest’s Products and Services Marketplace Solutions  Sourcing Guide  SciQuest.com Auctions  SciQuest.com LabDeals  SciQuest.com Resources  Source Book 

Shortcoming and Solution 

User sessions increased more than 100,000 per month in oct.1999

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Order management system was not made to handle this kind of problem

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SciQuest entered into an agreement with “Yantra” through PureEcommerce

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Introduced a training program to help its customer service representatives

Achievement 

It attempted to position itself as a vendor neutral partner for both buyers and suppliers.

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It secured over 100 enterprise customers and contracts with 850 suppliers.

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The company had more than 1.5 million stock keeping units.

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About 300 transactions were handled through the exchange each day involving 700 orders to suppliers

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The company’s catalogue had increased to one million product suppliers and research organizations

Failures 

Being increase in revenue year by year, company was facing deficit regularly

Year  1998  1999  2001 mn 

Revenue $0.48 mn $3.88 mn $23.26 mn

Deficit $4.22 mn $33.17 mn $82.83

Suggestion 

The idea was good

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Operating expenditures which can be reduced.

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If deficit is increased continuously then it is better to a company to stop down it.

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They should do more improvement on its policy.