ICG Commerce, DuPont Canada Enter E-Procurement Venture
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The joint venture is the first entry for ICG Commerce into the Canadian e-procurement market. ICG Commerce will transact up to CDN$700 million (US$475 million) annually of DuPont Canada's purchases of goods and services.
A revenue sharing agreement within the alliance calls for the two companies to leverage their combined resources and expertise, to broadly market the e-procurement service in Canada.
"By combining our sourcing expertise with ICG Commerce, and leveraging its vast supply chain and technological expertise, we expect to not only reduce the cost of our purchased goods and services, but we also expect to achieve significant efficiency improvements in all of our 'procurement through payment' operations," said Dave Colcleugh, Dupont Canada chairman, president, and chief executive officer.
Based in Jenkintown, PA, ICG Commerce is a comprehensive online procurement service for businesses, specialized in supply chain management, purchasing, and sourcing for any industry.
DuPont Canada is a science company employing more than 3,300, with 1999 revenues exceeding CDN$2.2 billion, serving customers domestically and in more than 40 other countries.
"When you think of blue chip companies with sustained track records of success and overall excellence, DuPont is always at the top of the list, said Rick Berry, president and chief executive officer of ICG Commerce.
"DuPont Canada brings supply chain expertise and impeccable business relationships that will help ICG Commerce develop and maintain a leading position in the Canadian e-procurement space."