More than a dozen vendors offer online procurement applications, which let users order items such as office supplies and repair parts directly from their PCs via a Web browser. The benefit: reduced purchase time cycles and a smooth flow of goods from supplier to customer. Though the market is still nascent, some analysts predict it will grow to $175 million this year, up from nothing just two years ago.

Solix CEO and founder Veena Gundavelli says the company will differentiate itself by offering a full suite of what she calls "enterprise operations management" applications. Called iOperations, the suite has an online procurement engine, as well as modules for travel planning, expense reporting, payment collection, and other self-service human resources applications.

Yankee group analyst Harry Tse says Solix is embracing the right model by going beyond general online procurement. "Ultimately, the value proposition for these vendors is to go beyond pure procurement and create a backbone that includes more employee-facing and customer-facing applications," he says.

Sensormatic Electronics, a maker of electronic security products in Boca Raton, Fla., is Solix's first customer. Sensormatic chose Solix because it took ownership and responsibility for the entire project,including integration with Sensormatic's Baan ERP system, says Larry Hatfield, VP of information services.