Bayer continues expansion of e-business

21-Mar-2001

Bayer is continuing to expand its e-business activities and by 2004, the company expects a sales potential through the Internet of EUR five billion. In some parts of the company, up to 50 percent of revenues will be derived in this way. Bayer is a founding member of, or a participant in, many international electronic marketplaces and has plans to set up new customer portals and marketplaces that will serve all its business segments. It also makes use of several freely accessible neutral platforms. The aim is to exploit the benefits of speed, low transaction expenses and global competition inherent to this form of trading. However, for Werner Spinner, member of the Board of Management, e-business will mean other changes, too: "We are going for an optimum mix of Old and New Economy. This will give rise to entirely new forms of customer relations."

An important role in future development will be played by the Electronic Business Initiative, set up at the Leverkusen headquarters of the Bayer Group. This is where Bayer experts monitor the market to spot specific uses for e-business. So far, nearly 100 potential e-business applications have been identified and some have already been implemented. Explaining Bayer's strategy, Spinner says: "Business-to-business is an area where we can directly offer research expertise and help in the selection and application of materials." Customer orientation and support – Bayer's traditional strengths – will be reinforced by the new technologies.

The BayerONE portal (Bayer Online E-business), which is already operating in the United States, is one example of the integration of the control and planning systems of business partners. Three hundred key customers in the plastics and polyurethane industries have online links with Bayer through this portal, giving them round-the-clock access to the details and status of their orders and the ability to place new orders at any time. The facility is being continuously expanded and adapted to individual customer needs.

An important foundation has been laid

E-business has very quickly reached all areas of the value added chain. Procurement, production and sales departments will be dealing in Internet auctions and working with online customer support and order tracking. In 2000, the sales volume within the Bayer Group amounted to EUR 250 million. To strengthen its core business, Bayer has integrated all the variations of electronic business right from the start. An important foundation was laid some time ago: since 1998, the Procurement division has been handling an increasing proportion of its annual material requirements (worth EUR 8 billion) through an electronic catalog. This catalog allows Bayer to order materials directly from manufacturers and has led to drastic reductions in order processing costs. It is now being merged into a joint marketplace project, named chemplorer, involving InfraServ Höchst and Deutsche Telekom.

By the end of 2001, Bayer will invest some EUR 100 million in the development of e-business structures. To encourage a professional approach to the new medium among its staff, Bayer offers specialized training courses and has created free Internet access and e-mail facilities on all desktop PCs.

https://www.chemeurope.com/en/news/2121/bayer-continues-expansion-of-e-business.html