IBM Taiwan Corp has been awarded a contract by the Taiwan government to build a supply-chain network that will connect international procurement offices of multinational firms which purchase more than $1.5bn worth of goods each a year from Taiwan.
IBM, Compaq Computer Corp, Dell Computer Corp and Hewlett-Packard Co. are at present the only four companies that qualify for the project. The project will make Taiwan the first territory outside the US to build such a supply-chain network. An IBM official estimated it would give Taiwan a two-to-three year lead over other countries in the application of e-commerce technology in its supply-chains.
The contract is split into a Project A for the large multinational companies and a Project B which is open to the about 25 local IT companies with annual revenues of NT$10bn ($312m). The government hopes these firms will, with IBM’s help, build up 20 to 30 supply-chain networks and help facilitate the automation and computerization of around 2,500 small and medium-sized manufacturers.
IBM will provide five application systems comprising online bidding, blueprint electronic interface exchange, electronic spreadsheets, visualized quality control and electronic supply chains. The project is due for completion within six months.
