IBM Will Connect To E2open Trading Hub

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March 01, 2004 (3:57 PM EST)

IBM on Monday said it would use E2open's electronic trading hub to conduct some business activities with suppliers.

IBM said it would start using the Redwood City, Calif., company this year to support its demand and supply planning and execution capabilities. IBM said E2open's multi-company process management software would handle IBM's collaboration processes with suppliers that represent more than 85 percent of its annual manufacturing procurement expenditures.

Armonk, N.Y.-based, IBM expects E2open to give it better visibility into it suppliers' inventory and supply operations, making it easier to respond to changes in customer demand by aligning forecasts with procurement activities, monitor suppliers' inventory levels, proactively evaluate exceptions and automatically trigger replenishment cycles.

IBM said improvements in supply-chain management reduced its cost and expense by more than $7 billion in 2003.

Privately held E2open said more than 1,500 companies currently use its trading hub, with a concentration of firms involved in the manufacture and consumption of a variety of electronic and consumer products. Its largest customers include Hitachi, LG Electronics, Matsushita Electric Industrial, Seagate Technology, Solectron and Wistron.