E-commerce solutions provider Clarus Corporation has no plans to extend the local reseller channel for its eProcurement product beyond the global agreement with Epicor.
Epicor began shipping eProcurement in Australia and New Zealand this week under its worldwide reseller agreement with Clarus, signed in February.
"Epicor is our global reseller. We will pursue and market dealers if we need local resellers," Todd Jarvis, director of international business development for Clarus, said.
Badged as an Epicor product, but powered by Clarus, eProcurement is a B2B electronic transaction solution designed to replace costly, time-consuming, paper-based methods. According to officials, unlike many transaction solutions, eProcurement does not take a transaction fee for each transaction processed.
Targeted at the mid-market segment, Harry Child, managing director for Epicor Australia/New Zealand, said both buyers and suppliers as well as marketplace facilitators would be interested in the solution.
According to Child, implementation of an electronic procurement system can reduce a company's office costs by at least 10 per cent per year. This will improve depending on how much the e-procurement solution is deployed within the company.
According to Child, the mid-market sector is more amenable to a product like eProcurement because these companies are less likely to have implemented an ERP system.
"We are not talking about spending millions of dollars to save millions of dollars," he said.
Epicor is aiming to have six customers on board within six months, Child said.
According to Jarvis, since deployment began in the US in February, 40 customers worldwide have purchased eProcurement, making the product the third largest in the market.
Jarvis said Clarus's revenue will grow from $US11.5 million in 1999 to over $40 million this year, largely driven by eProcurement.
According to Jarvis, Clarus is considering whether to ship eMarket, another procurement solution aimed at trading hubs, in the Australian marketplace via Epicor.