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METRO AG expands its presence in China through e-commerce

19.04.2000

METRO AG expands its presence in China through e-commerce

Gemex Trading, a subsidiary of Düsseldorf-based METRO AG, and Sparkice.com, China’s leading business-to-business portal for global e-commerce, have formed a strategic partnership.

Gemex Trading is the import agent of the Metro Group, and is responsible for international procurement. Founded in 1976, Gemex possesses outstanding expertise in all significant procurement markets for consumer goods and maintains excellent relationships with suppliers. Gemex has highly qualified employees, specialized management instruments as well as an infrastructure of exceptional quality which was developed especially for business-to-business procurement. In addition to the Metro Group, third-party companies are increasingly using its services.

The future business-to-business operations of METRO AG include, in addition to e-tailing with professional customers (Cash & Carry customers), the optimization of the process chains. With regard to e-processing and e-procurement, METRO AG has already joined the GlobalNetXChange platform. With the participation of Europe’s largest retailers, it is setting the standard for the future development of the business-to-business processing and procurement platform. The strategic partnership between Gemex Trading and Sparkice is the logical complement to the future business-to-business operations of METRO AG in China.

The mutual goal of this partnership is to offer smoothly operating, customized e-commerce solutions and global retailing resources. The Sparkice/Gemex business-to-business e-procurement platform will significantly change the procurement process, making it faster, more efficient and more transparent.

Gemex as a Service Provider for Users of the Sparkice E-Procurement Platform: Gemex Trading will provide, among others, the following functions and services for users of the Sparkice e-procurement: - Sourcing, requisitioning, digital images, pooling, customizing, pricing, order and logistics management, quality assurance, payment services, web enabling and translation services.

The Sparkice/Gemex business-to-business e-procurement solution reduces the costs of acquiring goods and services as well as the internal processing costs for all participants. It also minimizes procurement cycle time. In addition, it provides the procurement organization with the data required for analysis, monitoring and improvement of the entire procurement process.

Strategic Significance of the Partnership: Within this partnership, both companies are pursuing essential strategic goals. The joint business-to-business e-commerce platform forms not only the basis for the establishment of retail trade between the suppliers’ market in China and the global purchasing portal, but also the foundation of the vertical and horizontal e-business of Metro Cash & Carry China with small and mid-sized companies as well as with public services. Moreover, it marks the beginning of a further important phase of expansion of METRO AG and Sparkice throughout the entire Asian market.

"Metro’s e-commerce strategy has a clear business-to-business focus. One of the main elements of this strategy is to increase efficiency and profitability through e-commerce, for which Internet markets and retail platforms provide a suitable foundation. METRO AG took its first step in this direction with its participation in GlobalNetXChange, following it up in consistent fashion with the cooperation with Sparkice.com, - stated Dr. Hans-Joachim Körber, CEO of METRO AG, in describing the strategic objectives.

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