SciQuest.com’sB2B E-Marketplace

Presented By: Vijay Mangal Joydeep Das

Anuj Gupta Saurabh Sharma

E-Business

SciQuest.com

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.

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

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

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

Suppliers used two sales channels – traditional distributors and direct sales

This sales channels were often expensive

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

About the Technology In September 1998, SciQuest implemented the

OBI compliant Net. commerce solution

At the heart of SciQuest’s online catalog was DB2

It helps to eliminate much of its customers’ procurement paperwork

SciQuest B2B E-Marketplace

Scientific buyers

SciQuest.com

Supplier’s OrderingSystem

Supplier’sInventory

Search multipleSuppliers, createsOne purchase order

Order delivered electronically

Suppliers bill SciQuest.com

SciQuest.comSends consolidated Invoice to customer

Items shipped“directly” to customer

Cont’d… SciQuest used RS/6000 enterprise server

model H70 server and the HTTP server

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

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

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

SciQuest entered into an agreement with “Yantra” through PureEcommerce

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.

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

The company had more than 1.5 million stock keeping units.

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

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 Revenue Deficit 1998 $0.48 mn $4.22 mn 1999 $3.88 mn $33.17 mn 2001 $23.26 mn $82.83 mn

Suggestion The idea was good

Operating expenditures which can be reduced.

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

They should do more improvement on its policy.