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THE BIDVEST GROUP LIMITED
("BIDVEST")
LAUNCH OF E-COMMERCE PROJECT: "MYMARKET.COM"
BIDVEST HAS A MARKET CAPITALISATION OF R13 BILLION, WHICH MAKES IT THE
COUNTRY'S LARGEST SERVICE COMPANY AND SEVENTH-LARGEST INDUSTRIAL COMPANY LISTED
ON THE JOHANNESBURG STOCK EXCHANGE. FOCUSED ON SERVICE, TRADING AND
DISTRIBUTION, WHICH COULD ENCOMPASS LIGHT MANUFACTURING, IT HAS THE HIGHEST
POSSIBLE LIQUIDITY RATING ON THE JSE AND IS ONE OF THE MOST SOUGHT-AFTER SHARES
IN THE UNIT TRUST INDUSTRY, WITH 88 FUNDS HOLDING ITS STOCK AS AT NOVEMBER 2000
* BIDVEST TO INTRODUCE E-COMMERCE TRADING TO ITS COMPANIES AND TRADING PARTNERS
* AFTER AN INITIAL PHASE, MYMARKET.COM, A BUSINESS-TO-BUSINESS (B2B) ELECTRONIC
MARKET PLACE, WILL BE INTRODUCED TO BIDVEST CUSTOMERS BY THE END OF JUNE 2001
* MYMARKET.COM WILL BE A UNIQUE, ENABLING ENVIRONMENT BRINGING TOGETHER WILLING
BUYERS AND WILLING SELLERS IN AN E-MARKET DRIVEN BY SUPPLY AND DEMAND
* EACH CUSTOMER CAN CUSTOMISE MYMARKET.COM TO MEET HIS OR HER SPECIFIC NEEDS
* BUYERS CAN ALSO REGISTER AS SELLERS AND WILL BE ABLE TO BRING THEIR OWN
SUPPLIERS ONTO MYMARKET.COM
* BIDVEST'S 350 000 CUSTOMERS AND SUPPLIERS PROVIDE MYMARKET.COM WITH CRITICAL
MASS AND A UNIQUE SPREAD OF SERVICES AND GOODS ON OFFER
* MYMARKET.COM TO BE WHOLLY OWNED AND CONTROLLED BY BIDVEST
* MYMARKET.COM TO BE TESTED INTERNALLY ON BIDVEST OPERATIONS BEFORE ROLLOUT
* MYMARKET.COM TO COMPLEMENT, NOT REPLACE, EXISTING CHANNELS TO MARKET
* BIDVEST COMPANIES ALREADY HAVE FLEET CAPACITY TO DELIVER GOODS ORDERED ON
MYMARKET.COM
* MYMARKET.COM DEVELOPED WITH THE LATEST, "CUTTING-EDGE" TECHNOLOGY
* SUPPLY-CHAIN-MANAGEMENT SOFTWARE TO PROVIDE CONSIDERABLE SUPPLY-CHAIN
EFFICIENCIES TO BIDVEST AND TRADING PARTNERS
BRIAN JOFFE, THE BIDVEST CHAIRMAN, SAID:
"MYMARKET.COM WILL PROVIDE SIGNIFICANT COST SAVINGS, OPERATIONAL BENEFITS AND
IMPROVED BUSINESS EFFICIENCIES TO BIDVEST AND ITS CUSTOMERS. MYMARKET.COM CAN
BE CUSTOMISED ACCORDING TO THE UNIQUE NEEDS OF EACH CUSTOMER, AND WILL ALLOW
THEM TO MANAGE THEIR BUYING AND SELLING NEEDS IN THE MARKET. CUSTOMERS WILL
ALSO BE ABLE TO BRING THEIR OWN SUPPLIERS ONTO MYMARKET.COM. E-COMMERCE
BENEFITS WILL BOOST BIDVEST GROWTH AS TURNOVER AND SUPPLY CHAIN EFFICIENCIES
BECOME APPARENT IN THE GROUP'S GLOBAL OPERATIONS. BIDVEST'S UNIQUE SPREAD OF
350 000 CUSTOMERS GIVES MYMARKET.COM A UNIQUE ADVANTAGE IN ON-LINE TRADING; NO
OTHER ELECTRONIC MARKET PLACE CAN OFFER THE SAME SPREAD AND DEPTH OF BUYERS AND
SELLERS. BIDVEST'S MANAGEMENT TEAM HAS EXCELLED IN ENSURING THE RAPID ROLLOUT
OF A PROFITABLE BUSINESS MODEL THAT WILL SERVE THE GROUP WELL IN THE FUTURE."
16 NOVEMBER 2000
ENQUIRIES:
BIDVEST TEL: + 27 (0) 11 481 4129
BRIAN JOFFE, CHAIRMAN
JACK HOCHFELD, GROUP CORPORATE FINANCE TEL: + 27 (0) 11 481 4103
CELL: + 27 (0) 82 4597051
COLLEGE HILL TEL: + 27 (0) 11 447 3030
TOM ALLISON
BRENDAN TEMPLETON
THE BIDVEST GROUP LIMITED
("BIDVEST")
LAUNCH OF E-COMMERCE PROJECT: "MYMARKET.COM"
INTRODUCTION
BIDVEST, THE SERVICE AND TRADING COMPANY WITH AN ANNUAL TURNOVER OF R26,4
BILLION, HAS TODAY LAUNCHED A PROJECT THAT WILL ENABLE ITS 750 COMPANIES AND
ITS 350 000 CUSTOMERS AND SUPPLIERS TO TRADE ELECTRONICALLY.
BIDVEST BELIEVES IT HAS IDENTIFIED A UNIQUE OPPORTUNITY IN ELECTRONIC MARKET
PLACE TRADING. ITS EXISTING SPREAD OF BUYERS AND SELLERS GIVES IT THE NECESSARY
CRITICAL MASS TO ESTABLISH AN ELECTRONIC TRADING PLATFORM WITHOUT NEEDING TO
BRING IN THIRD PARTIES.
ACCORDINGLY, ITS E-COMMERCE PROJECT WILL BY THE END OF JUNE 2001, ESTABLISH A
BUSINESS-TO-BUSINESS (B2B) EXCHANGE, WHOLLY OWNED BY BIDVEST, CALLED
MYMARKET.COM, WHICH WILL ALLOW BIDVEST CUSTOMERS AND SUPPLIERS TO TRADE
ELECTRONICALLY.
THE NAME REFLECTS THE PHILOSOPHY OF THE EXCHANGE WHICH WILL BE CUSTOMER-DRIVEN,
NOT PROCUREMENT-DRIVEN AND BIDVEST TRADING PARTNERS WILL BE ABLE TO USE
MYMARKET.COM TO CREATE THEIR OWN E-MARKETS, CUSTOMISED TO MEET THEIR INDIVIDUAL
NEEDS. BIDVEST IS CREATING AN ENABLING ENVIRONMENT THAT WILL NOT ONLY INTRODUCE
THE BENEFITS OF SUPPLY-CHAIN-MANAGEMENT SOFTWARE AND SUPPLY-CHAIN EFFICIENCIES
TO CUSTOMERS, BUT WILL ALSO ALLOW THEM TO SELL THEIR GOODS ON MYMARKET.COM
WHILE BRINGING THEIR OWN SUPPLIERS ONTO MYMARKET.COM.
MYMARKET.COM WILL BE ABLE TO LEVERAGE OFF BIDVEST'S EXISTING STRUCTURE. THE
UNIQUE SIZE AND FOCUS OF BIDVEST'S OPERATIONS, COMBINED WITH ITS CRITICAL MASS
OF CLIENTS - MOST OF WHOM TRADE WITH BIDVEST AT LEAST ONCE A WEEK - MEANS
MYMARKET.COM WILL HAVE THE REQUISITE TURNOVER VOLUME WHEN IT FULLY OPERATIONAL
NEXT YEAR.
USING CUTTING-EDGE SOFTWARE FROM MICROSOFT, MYMARKET.COM WILL INTRODUCE BIDVEST
AND ITS TRADING PARTNERS TO AN ALTERNATIVE CHANNEL TO MARKET THAT WILL
COMPLEMENT, BUT NOT REPLACE, EXISTING ONES.
THE INITIAL PHASE OF THE PROJECT WILL ENTAIL ADAPTING INTERNAL TRADING BETWEEN
BIDVEST'S DIVISIONS TO E-COMMERCE. THIS WILL ENSURE MYMARKET.COM IS A TRIED AND
TESTED MARKET PLACE BEFORE IT IS ROLLED OUT TO BIDVEST'S TRADING PARTNERS.
BIDVEST, THROUGH ITS NETWORK OF COMPANIES, OWNS ONE OF THE BIGGEST, PRIVATELY
OWNED FLEETS IN SOUTH AFRICA, AND THIS WILL GIVE CUSTOMERS CONFIDENCE FROM
START UP IN THE DELIVERY OF GOODS TRADED ON MYMARKET.COM. THIS WILL PROVIDE THE
NECESSARY FULFILMENT CAPACITY TO CONTRACTS CONCLUDED ON MYMARKET.COM.
THE BIDVEST COMMUNITY'S INTRODUCTION TO E-COMMERCE IS BEING FACILITATED BY
INTERNATIONAL AND LOCAL EXPERTS. THEY ARE - MICROSOFT, THE PRIME CONTRACTOR IN
CHARGE OF OPERATING PLATFORMS; AQUAONLINE, RESPONSIBLE FOR BACK-OFFICE
INTEGRATION, WEBSITE DESIGN AND CUSTOMISATION; LOG-TEK, RESPONSIBLE FOR
CATALOGUE SERVICES; AND I-FUSION, RESPONSIBLE FOR CONNECTIVITY ROLLOUT.
BENEFITS TO CUSTOMERS
IN LINE WITH INTERNATIONAL TRENDS, MYMARKET.COM WILL INCORPORATE
SUPPLY-CHAIN-MANAGEMENT SOFTWARE WHICH WILL REDUCE SUPPLY CHAIN COSTS AND THE
SIZE OF INVENTORIES, SO BOOSTING PROFITS FOR ALL PARTICIPANTS. CONTINUOUS
BUSINESS ANALYTICS AND DIRECT TRADING WILL ALLOW REAL-TIME TRACKING OF
RESOURCES AND INVENTORIES, MAKING INVENTORY PLANNING MORE EFFICIENT AS BUYERS'
AND SELLERS' FRONT AND BACK OFFICES BECOME MORE CLOSELY INTEGRATED.
ADDITIONALLY, BIDVEST'S CUSTOMERS WILL ONLY PAY NOMINAL SUBSCRIPTION OR
TRANSACTION FEES TO ANY BIDVEST COMPANY ON MYMAKET.COM BECAUSE MYMARKET.COM
WILL BE WHOLLY OWNED BY BIDVEST, OBVIATING THE NEED FOR THIRD-PARTY FEES.
CUTTING OUT THIRD PARTIES ALSO MEANS ALL SENSITIVE TRADING INFORMATION ON
MYMARKET.COM REMAINS CONFIDENTIAL.
CUSTOMERS WILL BE ABLE TO ACCESS ALL THE BIDVEST COMPANIES VIA MYMARKET.COM AND
THEN TRADE ON LINE IN THE WIDE RANGE OF BIDVEST PRODUCTS USING ONE PIECE OF
SOFTWARE. THEY WILL BE ABLE TO ORDER PLANE TICKETS, STATIONERY, FOODSTUFFS, A
WHOLE RANGE OF DIVERSIFIED PRODUCTS RELATING TO THE FAST-FOOD INDUSTRY,
INSTALLATIONS SERVICES, AS WELL AS FREIGHT, LOGISTICS AND INTERNATIONAL
INSURANCE ON MYMARKET.COM. AND ALL THE TRANSACTIONS CAN BE INTEGRATED
IMMEDIATELY INTO THEIR ACCOUNTING SYSTEMS.
BECAUSE MYMARKET.COM WILL BE AN ENABLING ENVIRONMENT, CUSTOMERS WILL ALSO BE
ABLE TO REGISTER TO SELL THEIR OWN GOODS AND SERVICES, WHICH WILL EXTEND THE
DEPTH AND RANGE OF TRADING OPPORTUNITIES ON THE E-MARKET. THEY WILL BE
INTRODUCED TO ELECTRONIC, B2B TRADING AT NO RISK TO THEMSELVES, WITH NO NEED
FOR CAPITAL INVESTMENT, WHILE THEY PARTICIPATE AND EDUCATE THEMSELVES IN DOING
BUSINESS USING MODERN, CUTTING-EDGE TECHNOLOGY.
CUSTOMERS WILL ALSO BE ENCOURAGED TO BRING THEIR OWN SUPPLIERS ONTO
MYMARKET.COM, WHERE THIS WILL COMPLEMENT THE RANGE OF GOODS AND SERVICES
ALREADY ON OFFER, THUS INCREASING ITS EFFECTIVENESS FOR THEM.
BENEFITS TO BIDVEST
MYMARKET.COM'S SINGLE ENTRY POINT WILL GIVE CUSTOMERS AND SUPPLIERS A SINGLE
VIEW OF EACH OTHER, MAXIMISING CROSS-SELLING OPPORTUNITIES AND BOOSTING
TURNOVER. SUPPLY-CHAIN-MANAGEMENT SOFTWARE WILL ALSO CUT COSTS IN BIDVEST'S
SUPPLY AND PRODUCTION CHAINS AND WILL FULLY AUTOMATE A LARGE PART OF THE BUYING
AND SELLING PROCESS.
THE PROJECT WILL GIVE BIDVEST ONE OF THE LARGEST, PRIVATELY OWNED IT NETWORKS
IN AFRICA. THE COST OF BUILDING CONNECTIVITY IS EXPECTED TO HAVE A MINIMAL
IMPACT ON BIDVEST AS MOST OF IT WILL REPLACE EXISTING NETWORK-RELATED
EXPENDITURE COMMITMENTS. PRESENTLY, BIDVEST'S SUBSIDIARIES EACH RUN THEIR OWN
NETWORKS. THROUGH I-FUSION, THESE SEPARATE NETWORKS WILL BE RATIONALISED INTO
ONE TO FACILITATE EFFICIENT COMMUNICATION, DATA TRANSFER AND, MOST IMPORTANTLY,
HIGH-SPEED BANDWIDTH.
WHEN MYMARKET.COM IS LAUNCHED, BIDVEST WILL HAVE A HEALTHY, VIBRANT B2B
EXCHANGE CAPABLE OF COMPETING ALMOST IMMEDIATELY IN THE NEW E-CONOMY.
MYMARKET.COM WILL INTRODUCE THE CLASSIC, WIN-WIN BENEFITS OF THE NEW E-CONOMY
TO THE BIDVEST BUSINESS COMMUNITY. IT WILL BENEFIT ALL PARTIES BY CUTTING
COSTS, BOOSTING TURNOVER AND MAXIMISING NEW PROFIT OPPORTUNITIES.
SUPPLY-CHAIN-MANGEMENT AND REAL-TIME-ANALYTICS SOFTWARE WILL IMPROVE ALL
PARTICIPANTS' CONTROL AND PLANNING OF THEIR BUSINESS STRATEGIES. MINDFUL OF
THIS, MYMARKET.COM'S MOTTO WILL BE: "MIND YOUR OWN BUSINESS".
ENDS