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PricewaterhouseCoopers Selected by General Motors

24 February 2000

PricewaterhouseCoopers Selected by General Motors as Lead E-Business Integrator for B2B E-Commerce Initiatives

    NEW YORK--February 24, 2000--

    Initial Efforts Targeted toward GM TradeXchange Project Rapid Project Approach Delivers Significant Cost and Process Efficiencies

    PricewaterhouseCoopers, the world's leading professional services organization, has been named lead E-Business integrator for GM's B2B E-Commerce initiatives. In this role, PricewaterhouseCoopers is responsible for providing E-Business services ranging from strategy through technology deployment across the GM supply chain. Initial project work is focused on helping to establish GM TradeXchange -- currently the world's largest and most ambitious business-to-business marketplace. GM TradeXchange is based on software from Commerce One, a leading provider of electronic commerce applications.
    PricewaterhouseCoopers' work in support of GM TradeXchange includes web-enabling key activities within General Motors' supply chain to maximize efficiencies and a stream of sustained savings. PricewaterhouseCoopers, working in conjunction with Commerce One, recently developed and launched an informational portal for the new venture in three weeks. This portal allows users to find information and view demonstrations of upcoming GM TradeXchange capabilities. This rapid deployment offers General Motors and its suppliers instant access to information on the portal where they will ultimately converge to transact business and share information on purchasing, finance, production control and logistics.
    "We selected PricewaterhouseCoopers based on their E-Business knowledge and record of success with General Motors," said Alan Turfe, Executive Director, GM TradeXchange. "From day one they have operated at `net speed' to make GM TradeXchange the first operational automotive exchange."
    The formation of the GM TradeXchange virtual marketplace will transform the way business transactions are conducted in the automotive industry, according to J. Christopher Everett, global E-Business leader of PricewaterhouseCoopers. "The GM TradeXchange initiative demonstrates what is possible with E-Business - the transformation of a company, and a complete industry convergence."
    Creating a single transaction platform for all suppliers opens new transaction channels for General Motors who can now expand its reach and interact with an even broader pool of trading partners. With the initial phase completed, more than 200,000 catalog items are currently available for purchase via the GM TradeXchange site.
    In the short time since its launch, General Motors has purchased more than $4,000,000 of maintenance, repair and operational supplies from the catalogs of five suppliers enrolled in the network. In addition, GM TradeXchange has conducted a number of successful auctions totaling over $2,200,000 in revenues for General Motors and other auction participants. Most recently, GM TradeXchange completed its first bid/quote process for a large volume of rubber sealing packages resulting in $147 million in contracts awarded to four suppliers, each receiving a portion of the order from GM and Isuzu.
    Capabilities are being added to the GM TradeXchange site at a rapid pace. Immediate plans include adding e-RFQ (request for quote) services. In the future, General Motors will build its portfolio of products and services on the GM TradeXchange with capabilities such as financial and supply chain management services.
    PricewaterhouseCoopers is also working on another key component of General Motors' business-to-business E-Business strategy - the GMSupplyPower.com portal. SupplyPower will enable real-time communications between General Motors and its immediate supply base for certain production control and engineering information. Examples of SupplyPower portal service offerings include supplier mailboxes, bulletin boards, and manufacturing schedules. According to Lou Fierens, General Motors, the executive in charge of General Motors' SupplyPower initiative, "Our supply partners will have the ability to share information like never before through the SupplyPower portal. When combined with the purchasing power offered by GM TradeXchange, suppliers will realize truly outstanding cost efficiencies."

PricewaterhouseCoopers

    PricewaterhouseCoopers (www.pwcglobal.com) is the world's largest professional services organization. Drawing on the knowledge and skills of more than 150,000 people in 150 countries, we help our clients solve complex business problems and measurably enhance their ability to build value, manage risk and improve performance in an Internet-enabled world.
    The Management Consulting Services practice of PricewaterhouseCoopers helps companies harness the competitive benefits of E-Business by integrating strategic change, performance improvement and technology solutions. Our organization provides a range of industry-specific services designed to provide innovative, reliable and scaleable e-solutions to global companies and Internet start-ups. These services include three key components: strategy, design and infrastructure. To augment its services, PricewaterhouseCoopers is making investments in and forming relationships with companies in four key areas: web design and development, e-business technology and tools, e-transaction businesses and e-business/web strategy.
    PricewaterhouseCoopers refers to the member firms of the worldwide PricewaterhouseCoopers organization.

General Motors and GM TradeXchange

    GM TradeXchange is the online e-marketplace for the automotive industry, including General Motors, its suppliers and other businesses, allowing them to trade goods and services with speed and efficiency via the Internet. Based on the Commerce One MarketSite Portal solution, GM TradeXchange went live with the automotive industry's first-ever Internet-based business-to-business auction in December 1999. In addition to online auctions, online catalog orders totaling more than $4 million have been transacted through GM TradeXchange to date, with 200,000 catalog items currently available through five participating companies. GM spends approximately $87 billion annually with its more than 30,000 suppliers worldwide.