EPurchase.net is scheduled to go online by mid-year and will provide a single point of access for buyers and suppliers to exchange products and services, such as golf course maintenance equipment, food and beverage services and broader hospitality industry products. ePurchase.net will be operated as a joint venture with initial funding from ClubCorp and Harbinger. The two companies are also in discussions with other industry leaders regarding the inclusion of additional participants in this initial investment.
This venture will revolutionize the way our industry buys products and services, said Robert Dedman, Jr., CEO of ClubCorp. The potential to reduce operating costs and simplify the buying process is compelling, particularly as it will enhance our ability to manage the purchasing function at each of the properties in our global portfolio. The marketplace creates a single site for suppliers to market to their customers and for buyers to find and order what they need, when they need it. Harbinger is a proven partner in bringing comprehensive marketplaces together in a very short timeframe using its harbinger.netSM technology.
Harbinger evaluates many marketplace opportunities and teaming with ClubCorp, the world’s largest owner and operator of golf courses, golf-related private clubs, resorts and business clubs, makes this venture an outstanding investment opportunity and further validates the value of harbinger.net as the back office provider for emerging markets, said James M. Travers, President and CEO of Harbinger. ClubCorp provides an excellent foundation on which to build an industry solution that brings suppliers and buyers together in an online marketplace and helps the industry at large eliminate paper transactions, reduce cycle times and streamline the selection, purchase and delivery of all products and services.
We also see Harbinger’s recently announced merger with Peregrine Systems bringing additional value to ePurchase.net, added ClubCorp EVP and CIO Mike Dillard. It’s an ideal business opportunity that combines the best of eProcurement processes and products of both companies, creating a comprehensive, end-to-end solution for e-Business.
Purchasing in the golf industry exceeded $10 billion in 1999, while the broader targeted market segment for ePurchase.net (including small to mid-size resorts and hotels as well as the golf industry) had purchases in excess of $27 billion, according to research done by the Alliance Consulting Group. Both segments are expected to see continued dramatic growth.
ePurchase.net will aggregate products and services from suppliers, providing a Web-enabled electronic purchasing site accessible by participating businesses. By taking the time-consuming processes associated with the paper-based purchasing function and integrating them into a single electronic marketplace, ePurchase.net will make the purchasing process more efficient and cost-effective. Access to the purchasing site will be accomplished using any standard Internet browser.
The ePurchase.net electronic marketsite will be hosted on Harbinger’s e-Commerce portal, harbinger.net, and Harbinger will serve as the manager and operator of the purchasing site. Calico, Inc. was selected by ePurchase.net to provide the electronic marketplace software. Unlike many software providers, Calico’s MarketMaker software is designed specifically for communities that have many buyers and many suppliers. In addition, the software will be tailored to the specific needs of the industry to make the solutions as easy to use as possible. KPMG Consulting, LLC, a worldwide supplier of information technology consulting, will also be providing integration services for the project.
