Nestlé and Danone develop SAP-based e-marketplace

NEWS Nestlé and Danone are to build an electronic procurement marketplace based on SAP technology in an attempt to cut supply costs. As first reported in Silicon.com last week, the site, dubbed CPGmarket.com, will enable the consumer goods companies to buy and sell online as well as access industry information. Suppliers and distributors will be able to place orders on catalogue offers, bid for business and take part in auctions. Rober Raeber, executive vice president at Nestlé, said the benefits will be "fast and substantial". He claimed companies will also have access to sourcing services for raw materials and packaging. In a statement, the companies said the site is designed to "enhance the efficiencies of logistics while at the same time reducing procurement costs". Franck Riboud, Danone chairman, called the marketplace a significant step
forward for his company's Internet strategy.