Tea industry cuts sourcing times from 40 to 15 days with on-line web trading software

eteatrade, the on-line system for sourcing tea, says it has reduced the time to sell and pack tea for shipping from 40 days to 15 by running its web trading site on LiveExchange, the e-sourcing business software platform from developer Moai Technologies. The system allows tea traders around the world to buy, sell, source, transport and finance tea. “This new contract illustrates the power of e-sourcing and demonstrates that B2B e-commerce can have a positive impact on any industry, including an established market like the tea trade,” says David Oates, vice president EMEA for Moai. “Moai’s negotiation tool enables buyers and sellers to negotiate in a faster, more competitive way. What’s more, by investing in a standard PC and web browser, tea producers can now use eteatrade’s service to more effectively compete in the global drinks market.” In this case, eteatrade enables world-wide tea producers to create an offer, view buyers and distribute samples. Negotiations then take place using the LiveExchange on-line negotiation software, which allows factors like price, quantity and shipping terms to be weighted. It’s another example of the time- and money-saving potential of intelligent web communications and transaction software. Moai has been selling web auctioning software since 1996, but its current wave of successful implementation are almost all in what it terms ‘e-sourcing’ – the whole finding, negotiating, selling, buying business. Oates says customers like GE that buy their glass, steel, electronic components, PCBs and the rest through the system are making 15—20% savings, “but the real benefit is in reducing the whole sourcing process from months to weeks.” He also points out that the system assists procurement professionals, rather than stripping them of their roles. “We’re not doing anything radical here: we’re just automating some processes and saving clients a lot of money.” Moai targets its software on the bigger corporates in the £100-600 million revenues bracket. He says there are manufacturing industry clients in the UK, but won’t mention names. “Most are loathe to give themselves up as references,” he says.