656 E. Swedesford Road, Suite 208
Wayne, PA 19087
Dan Tiernan, Dir.
of Business Develop.
Line or Service Internet based solution to support procurement for members
of industry specific buying groups and large fragmented corporations that
do not have a common technical infrastructure (e.g. Republic Industries,
Thomson, RPM, etc.)
Rights The entire solution is Internet based utilizing a web
development application licensed from Ironside Technologies, running on an
MS-SQL Server Database in an MS-Windows NT environment.
The product team has over 10 years experience each in developing
purchasing and sales systems, having piloted and/or implemented ordering
systems in over 500 different organizations in every conceivable niche of
manufacturing and distribution. The
Community Data Model, which allows groups of buyers and sellers to
operate from a shared system, using a shared database, while allowing a
personalized view for each member is unique in the marketplace and we are
considering a patent application.
Opportunities The Aatlas product, ecSCOREä, has been designed in a manner
that it can be tailored to meet the purchasing needs of virtually any
industry. Aatlas goal is
to become the dominant marketplace in the industries that we choose
to enter, much like Sabre had become the dominant marketplace for travel
services. We will achieve this dominance by partnering with
influential sponsors in each marketplace. Sponsors can be holding
companies, franchisors, buying groups, trade groups, procurement
outsourcing companies, associations, or other organizations that can
influence or dictate the spending habits of large groups of buyers with
common needs. The sponsor
will not only help to save the members money, but will also transform this
community buying power into a revenue generating asset, from which they
will benefit - up to $3 million per year for every $100 million in
purchasing volume. For
example, in the Equine industry, Aatlas has partnered with a purchasing
group called EquiSource, which is owned in part by the National
Thoroughbred Racing Association. Similar
sponsors have been identified and contacted in a wide range of industries
including: textile manufacturing, coffee service companies, higher
education, K-12 education, prisons, hotels, golf courses and many others.
Two other buying communities have already committed to
implementation and two others are in negotiation.
Current market opportunities that have been identified and are in a
sales cycle represent over $9 billion in purchases, which would generate
over $200 million per year in revenue for Aatlas.
The total global market opportunity is no less than 100 times this
and Distribution Unlike traditional systems that are focused on
lowering costs by automating processes, ecSCORE is promoted as a means
for industry sponsors to generate revenue for their group (through
supplier rebates) and provide bottom-line cost savings that average 15%
for their members. The
sponsors have a financial incentive to implement ecSCORE and provide the
credibility necessary to change the purchasing behaviors for groups of
buyers and sellers transacting billions of dollars in purchases.
In order to promote these types of sales, Aatlas will need to hire
Sales Directors with experience in complex solution selling environments,
e.g. ERP Sales (SAP, etc.,). ecSCORE
should not require a high cost marketing structure, since the majority of
the sales will be targeted to very specific industry sponsors.
Instead of telemarketing and mass-mailings, ecSCORE marketing will
be more focused on research and analysis of specific markets and market
players. In order to market and sell ecSCORE to large, fragmented
corporations, a traditional software sales team will need to be developed.
Development The founding
team of Aatlas, drawing on over 40 years combined experience, spent over 6
months in detailed design of ecSCORE prior to any software coding.
Unlike most software development projects that focus on user
screens and processes, the Aatlas team defined the overall processes and
developed a data model to support the processes.
This disciplined approach has resulted in an overall design that
should serve as a solid road map for the future.
We are not aware of any direct competition utilizing industry specific
buying groups to develop communities.
However, the potential competitors can be broken into three groups:
custom systems designed for group purchasing, enterprise procurement
applications (Ariba, CommerceOne, et al) and web marketplaces (Chemdex,
Vertical Net, et al). Each of
these groups would have to make major shifts in strategy and product
development to compete against the Aatlas approach.
The battles will be won on an industry by industry basis and in
some industries, there may be multiple winners.
As Aatlas becomes the dominant player in any given marketplace, the
ultimate competition may become The Robinson Patman Act (restrictions on
supplier ability to offer preferential pricing to competitors) and the
Sherman Anit-Trust Act.