07/05/00
The agreement positions the partners as leaders of the new technology in B2B e-commerce in Spain
 
REPSOL YPF, BBVA, IBERIA AND TELEFONICA SET UP THE LARGEST COMPANY IN SPAIN FOR ON-LINE BUYING
 

 

Partners will provide a joint buying capacity of over one trillion pesetas per year.

Repsol YPF, BBVA, Iberia and Telef�nica have associated to set up an equal partnership joint venture to run an e-procurement exchange for the acquisition of non-production goods and services required by all four companies.

The new company, in which all partners will have equal shares and rights, is the first of its kind in Spain, and has been created with the intention of covering a wide membership spectrum. New local partners are expected to join the venture in the countries where the network is developed, in order to buy and sell through this portal.

Today, non-production goods and services purchased by companies via Internet account for 20% to 25% of global corporate buying, which gives the new company an overall buying capacity of more than one trillion pesetas, (6 billion euros) per year.

The main benefits for buyers and sellers will be:

  • A huge cut in the overheads related to buying operations.
  • Lower prices.
  • Greater efficiency in buying and selling processes, reducing inefficiency and increasing transparency.
  • The opening up of new markets and commercial channels to suppliers.
  • Lower stock overheads.
  • The elimination of intermediary inefficiency in certain distribution chains.

This agreement forms part of a strategic alliance between Telef�nica and BBVA, now strengthened in this market by the incorporation of Repsol YPF and Iberia. This horizontal portal is intended to be the largest in Spain and will include an online system of payment and credit card facilities, developed under the leadership of Telef�nica and BBVA, which will offer services such as printed receipts to buyers and sellers, electronically presented invoices, and the method of payment chosen by the parties to each transaction.

Although the agreement mentioned herein refers to the development of this new business in Spain, similar agreements are under negotiation in all Latin American countries for the purpose of creating a regional network to maximise economies of scale and ensure larger and better opportunities for buyers and sellers. It is estimated that companies currently trading in marketplaces of this kind obtain savings of between 10% and 20% on their supplies.

This regional network will also be operated by Telef�nica and BBVA, who supply the e-commerce technology necessary for each country, serving as a basis on which to develop payment facilities, logistics and other added value services required to carry out such on-line operations.

Repsol YPF�s membership of this e-network complements its participation in other such exchanges for e-commerce. Repsol YPF is also a charter member, together with other international oil majors, of a similar energy portal for the purchase of the goods and services required for production by each of its business areas. Through its chemical division, it is a member of ChemConnect, an e-commerce network specialised in chemical products.

The company recently presented its web-site www.repsol-ypf.com on Internet. This web-site stands out from others in that it does not exclusively target the company�s customers, but is addressed to all Internet consumers and users, including those who do not buy Repsol YPF products. It includes the corporate web and is intended to strengthen and increase the capacity to attend current and future customers.