I2 Technologies Inc. (ITWO--Nasdaq) and Siemens IT Service today disclosed plans to jointly develop an online marketplace that will offer electronic-procurement-management services.
The companies will make the services available through i2's TradeMatrix marketplace platform, which provides hosted services for procurement, fulfillment, shopping, planning, and product development.
Under the alliance, the partners will develop customized electronic-procurement services for companies that want to use Siemens as their prime contractor. Siemens will also act as the main customer of the marketplace.
Online procurement management has the potential to streamline product costs and development, the companies say. The Yankee Group, which estimates that business-to-business E-commerce will grow from $138 billion in 1999 to more than $541 billion in 2003, says the cost savings and convenience of online procurement make it a worthwhile investment for companies of all sizes.