Nestlé S.A. and Danone to Launch Electronic Market-Place


Nestlé S.A. and Danone Group, world leaders in the food industry, are to set up Europe's first Internet market-place for e-procurement in the consumer goods sector.

CPGmarket.com will enhance the efficiency of logistics while at the same time reducing procurement costs for businesses producing, distributing and selling consumer goods.

Other companies will be invited to join the founding partners.

Scheduled to go on-line in July this year, the service will be based on the mySAP.com e-business platform. CPGmarket.com could later link up to CPG market-places in other parts of the world.

A unique electronic platform for purchasing and supply chain management

CPGmarket.com will allow companies not only to buy and sell on-line, but also to access industry information.

This unique initiative in Europe will cut supply costs through automated processing of orders and sales.

Buyers and suppliers will be able to place orders on catalogue offers, call for bids and participate in auctions. They will also have access to sourcing services for raw materials and packaging, as well as capital goods and services. Participants will benefit from a more efficient market and lower costs through higher transaction efficiency and simplified procedures.

Services through CPGmarket.com may later be extended to allow links between all parties involved in the production and marketing of a product at every stage from market surveys to logistics, planning and forward management. This would cut costs for design and production launch, by the same token quickening innovation and enhancing overall efficiency. CPGmarket.com will also provide targeted information through a specialized forum covering news, updates, events, discussion, search tools and more.

Finally, it will create a virtual community which will offer its services to other companies.

Robert Raeber, Executive Vice President Nestlé S.A. for Europe, said: "This project brings the values of what is commonly called the 'new economy' into the heart of successful international fast moving consumer goods companies. Benefits delivered will be fast and substantial."

Franck Riboud, Chairman of Danone Group, commented: "For us this is a significant step forward in the process of using new technologies to enhance our purchasing efficiency. It is also part of our overall 'business-to-business' and 'business-to-consumer' internet strategy."

Léo Apotheker, Chief Executive of SAP EMEA, noted: "Nestlé S.A. and Danone Group are the ideal partners for a venture bringing together European business leaders in the consumer goods sector. All these businesses and their partners will make the most of this new opportunity offered by the Internet economy through CPGmarket.com, the first on-line market meeting their specific needs. Open and cooperative, this market will be using our e-commerce offering mySAP.com."