Toyota and i2 Form E-Company To Serve Automotive Replacement Parts Market
23 February 2000
Toyota and i2 Form E-Business Company To Serve Automotive Replacement Parts Market
iStarXchange First Online B-to-B Parts and Service Marketplace
DETROIT, Feb. 23 -- Toyota Motor North America today
announced that Toyota Motor Sales, (TMS) USA and i2 Technologies, Inc.
have reached a definitive agreement, forming a partnership to
develop and operate iStarXchange, an electronic marketplace serving the
$100 billion U.S. automotive replacement parts market for the service and
repair industry.
The business venture will be an independent company, jointly owned by TMS
and i2. The new company will encourage all automotive original equipment
manufacturers (OEMs), suppliers, wholesalers and independent installers to
participate within an open architecture.
"iStarXchange will provide installers, dealers, and retailers an efficient
online marketplace to locate, price, order and fulfill automotive service
parts purchases," said J. Davis Illingworth, TMS senior vice president,
planning and development. "This new virtual marketplace will enable every
participant in the replacement parts supply chain to increase efficiency while
creating value and higher satisfaction for their customers."
iStarXchange is the first online parts and service marketplace backed by a
major automaker and a leading e-business firm. Equity shares will be divided
between the two companies, with TMS holding a majority stake. The new company
is located in Torrance, California and initial staffing will come from both i2
and Toyota.
"A fully developed business plan has been prepared for iStarXchange,"
noted Illingworth. "The initial service offerings are expected to be
available in the second quarter of 2000."
iStarXchange Will Create Value for a Large Market
The business-to-business automotive replacement parts market consists of
more than 160,000 buyers, 66,000 sellers and millions of unique part numbers.
Locating and purchasing available parts can be an inefficient process,
requiring multiple phone and fax communications and data look-ups on
proprietary systems. This is particularly problematic when fulfilling urgent
customer needs.
"By taking advantage of the efficiency and visibility of the Internet,
iStarXchange will automate the parts buying process and match replacement
parts supply and demand," said i2 President Greg Brady. "This is the first
system that will link together automotive replacement parts and services
providers in a single online marketplace."
Initial services will include catalog hosting, technical content, demand
planning, parts replenishment and purchasing, online transactions and
invoicing, supplier collaboration, auctions and reverse auctions, and
procurement planning. The marketplace will later add components to help
optimize parts delivery, customer service, order commitments and shipment
tracking.
Buyers will receive one-stop access to all aftermarket needs -- from parts
to indirect goods and value-added supply chain services. Buyers also will
benefit from greater visibility into parts availability and can potentially
realize cost reductions, due to combined buying power and more competitive
pricing.
Sellers, including OEMs, suppliers, wholesalers, and logistics partners,
will benefit from expanded market reach, reduced inquiry processing costs,
real-time demand information, and reduced inventory-carrying costs. Both
buyers and sellers will benefit from greatly reduced transaction costs, as
well as efficiencies created by supply chain collaboration and optimization.
iStarXchange will support Toyota Genuine Parts sold by Toyota and Lexus
dealers as well as aftermarket parts and supplies for the entire automotive
industry.
Toyota and i2 Partner
i2 will provide the solution, implementation and support, as well as host
and manage the marketplace. iStarXchange will be powered by i2's TradeMatrix.
This Internet platform offers the broadest spectrum of advanced optimization
and hosted services available for conducting business-to-business e-commerce
in real-time, and for making more profitable decisions.
"Toyota is a highly respected company, known for quality products,
efficient manufacturing and superior customer service," said i2 Chief
Executive Officer Sanjiv Sidhu. "The combination of Toyota's automotive
industry experience with i2's leading solutions for intelligent e-business
applications, positions iStarXchange to be a premiere automotive industry
business-to-business marketplace."
"The goal is to end the era of disconnected buyers and suppliers with
inefficient use of inventory," said Yoshimi Inaba, TMS president and chief
executive officer. "iStarXchange will create value for all stakeholders in
the automotive aftermarket and we encourage others to join us as partners."
About Toyota Motor Sales
Toyota Motor Sales, USA is the marketing, sales, distribution and customer
service arm of Toyota in America. Toyota is America's fourth largest carmaker
and manufactures more than one million cars per year in North America.
Established in 1957, Toyota Motor Sales oversees operations for more than
1400 Toyota, Lexus and Toyota Industrial Equipment dealerships in 49 states.
With approximately 8,500 employees, Toyota Motor Sales and its subsidiaries
also are involved in financial and insurance services, distribution logistics,
motorsports R & D and the aviation and boating industries. The company's main
Web site is http://www.toyota.com.
About i2
i2 is the leading global provider of intelligent eBusiness solutions.
Founded in 1988, i2's vision is to add $50 billion of value for its customers
by the year 2005. i2 is headquartered in Dallas, TX, has approximately
3,000 employees and maintains offices worldwide. Visit i2's Web site at
http://www.i2.com.
TradeMatrix is a platform for building business-to-business and
business-to-consumer marketplaces. TradeMatrix includes the broadest spectrum
of solutions and hosted services available, enabling customers, partners,
suppliers, and service providers to conduct business in real-time, and to make
more profitable decisions. TradeMatrix services and marketplaces are powered
by i2's advanced optimization and execution capabilities for improved
decision-making.
Auto aftermarket businesses interested in iStarXchange should contact Doug
Formby at (310) 974-5668 or Chuck Emery at (310) 974-5604.