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Elcom International, Inc. - Procurement Software &
Solutions - Category Directory
(781)
440-3333
10
Oceana Way
Norwood, MA 02062
www.elcominternational.com
Sales
$237
million
Business Description
Elcom International, Inc. (“Elcom” or the “Company”), a corporation formed
under the laws of Delaware in December 1992, is a leading provider of
Internet and web-based remotely-hosted, integrated eProcurement and
eMarketplace solutions and services (“ePurchasing”). The Company’s PECOSTM
ePurchasing solution is remotely-hosted by Elcom providing rapid deployment
and single point responsibility for clients. In total, over 100
organizations are using or accessing Elcom’s solution under these licenses.
Elcom became publicly-held and quoted on NASDAQ in 1995 and now trades on
the OTCBB:ELCO. Elcom has a seasoned management team in place with
substantial experience in eBusiness technologies. The Company operates in
the U.S. and U.K. with the majority of current revenues and projected future
growth expected to be generated from U.K. clients. Although Elcom’s
ePurchasing system is generic and can be used in any industry, Elcom has a
growing presence in the utilities and public sector marketplaces.
Company’s ePurchasing solution combines robust integrated eProcurement and
eMarketplace capabilities and is remotely-hosted via the Company’s data
center. Management believes that the combination of eProcurement and
eMarketplace functionality capabilities in a single code base gives Elcom a
strong low-cost offering and importantly, can be offered to potential
clients from either functional viewpoint.
Since its inception in 1992, the Company has developed its PECOSTM
(Professional Electronic Commerce Online System) system, which automates
many supply chain and financial settlement functions associated with
procurement. The Company intends to augment its core ePurchasing solutions
with other supply chain and supplier-oriented systems to enable the conduct
of interactive procurement, supplier relationship management, and financial
settlement. The Company has licensed a dynamic trading system platform to
provide auction, reverse auction, and other electronic negotiation (or
eNegotiation) functions and has also marketed an asset management system,
both from third parties, which modules are offered as optional functionality
to clients. The Company’s PECOSTM solution can support large numbers of
end-user clients, products, suppliers and transactions and its transaction
server middleware provides a scalable foundation for robust system
performance and high transaction capacity.
Procurement and Sourcing Overview
AMR Research estimates that the procurement and sourcing market will grow
from $1.7 billion in 2002 to $2.8 billion in 2007. AMR also estimated the
professional services market for procurement and sourcing consulting
services was approximately $3 billion in 2002. Due to cost containment
policies, the Company has not paid any “affiliate fees’ to any industry
research companies and, to management’s knowledge, has not been mentioned
and/or discussed in any significant industry research reports during most of
2002 and all of 2003.
Products and Pricing
Products. The Company develops and licenses its PECOSTM remotely-hosted,
self-service, Internet and web-based automated purchasing and marketplace
systems, as described above. The Company also offers a dynamic trading
system and has offered an asset management system, each from third party
companies.
Pricing. The Company believes that PECOSTM, including its remotely-hosted
automated eProcurement and eMarketplace system(s), is competitively priced
compared to costs charged by other eProcurement software providers.
Professional Services
The Company’s professional service offerings include various consulting and
supplier services to its clients. These services range from implementation
of PECOS and initial training and consulting, to interfacing data from PECOS
into any back-end computer systems, including Enterprise Resource Planning
(“ERP”) systems such as Oracle, SAP, PeopleSoft, Lawson, etc. Suppliers are
also offered services associated with catalog content and categorization,
loading procedures and automated data update methodologies.
Competition
The market for ePurchasing solutions is relatively new and evolving rapidly.
The Company expects competition in this market to intensify in the future.
Among other factors, before investing in an eBusiness system, the Company
believes potential clients consider the cost of the system compared to the
level of features and functions available in electronic commerce
(“eCommerce”) applications and the cost to acquire, implement and maintain
the system, as well as the length of time to implement a system and, as
applicable, integrate it with a company’s existing computer system. The
Company competes with vendors of prepackaged eCommerce software, vendors of
software tools for developing eCommerce applications and systems
integrators. The Company’s competitors include Ariba, Inc., Perfect
Commerce, which acquired eScout (based on the Commerce One platform), Ketera
(based on Ariba, hosted) and Epsilon (Ariba). The Company anticipates future
competition from other emerging and established companies, including Oracle,
PeopleSoft, and SAP, all of which have announced products or alliances to
offer Internet-based eCommerce, including eProcurement modules which
function as part of their ERP system(s). The Company does not typically
engage potential clients which have a major ERP system in place. The
Company’s potential competitors also include systems integrators such as
Electronic Data Systems (EDS) and a number of EDI solution vendors.
Certain of these and other competitors have longer operating histories and
most have significantly greater financial, technical, marketing and other
resources than the Company and thus may have more extensive sales or
distribution networks and may be able to develop their solution(s) or
respond more quickly to new or changing opportunities, technologies and
client requirements. Also, many current and potential competitors have
greater name recognition and more extensive client bases that could be
leveraged, thereby gaining market share to the Company’s detriment. Such
competitors may be able to undertake more extensive promotional activities,
adopt more aggressive pricing policies and offer more attractive terms to
purchasers than the Company and to bundle their products in a manner that
may discourage users from purchasing products offered by the Company. In
addition, current and potential competitors have established or may
establish cooperative relationships among themselves or with third parties
to enhance their products. Accordingly, it is possible that new competitors
or alliances among competitors may emerge and rapidly acquire significant
market share. There can be no assurance that the Company will be able to
compete effectively with competitors or that the competitive pressures faced
by the Company will not have an adverse effect on the Company’s business,
results of operations and/or financial condition.
Procurement Software & Solutions
Companies in the Directory
Ariba
Elcom International
Verticalnet
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