Las Vegas November 1, 2001 Despite the gloominess of last weeks' workforce cuts, PurchasePro is still going forward. In a joint statement issued this week, Corporate Express Inc., a supplier of office and computer products and services, and PurchasePro have announced an alliance. The alliance includes the purchase of a PurchasePro e-marketplace software license, a preferred supplier product listing throughout the PurchasePro Commerce Network and joint sales and marketing activities between the corporations.
A separate announcement, made by PurchasePro, reports that the company held 234 reverse auctions using e-Source, the company's strategic sourcing product, in the month ended October 31, 2001, compared with 130 auctions held in September.
PurchasePro's e-MarketMaker software enables Corporate Express to aggregate its business customers into an e-procurement application, while also providing its clients with a vehicle to buy and sell its products and services nationwide. The new Corporate Express marketplace, which is expected to be operational later this year, provides the international company with an immediate presence in the e-commerce industry, supplementing Corporate Express' own proprietary e-commerce site, E-Way.
With more than $290 million flowing over the PurchasePro network in the third quarter alone, Corporate Express expects the PurchasePro Commerce Network to add a significant distribution channel for the company. Corporate Express generated $466 million in online revenue for 2000, a 395 percent increase over 1999, and 2001 online sales are expected to be approximately $750 million and more than $1 billion in 2002.
"Corporate Express' relationship with PurchasePro offers our customers another avenue to do business with us and positions us to continue to grow revenue in business sectors above and beyond our traditional model," said Mark Hoffman, president CEO of Corporate Express.
In addition to its marketplace license, Corporate Express has signed an agreement to become the preferred office product supplier to hundreds of thousands of businesses throughout the PurchasePro Commerce Network. Under the terms of the contract, the companies will also participate in joint sales and marketing activities and expect to reach an additional 2.6 million customers a month through interactive and educational newsletters and e-mail and Internet advertising campaigns. Corporate Express will also provide companies throughout the PurchasePro network with "Hot Deals" and other promotional initiatives.
PurchasePro also announced today that 29,000 purchase orders, valued at $33 million crossed its commerce network in October, compared with 22,000, valued at $22 million in September. For the quarter ended September 30, 2001, 82,000 purchase orders crossed the network valued at $86 million, compared with 60,000 purchase orders in the second quarter valued at $61 million.