General Motors Corp. has given its first public glimpse of how it sees the Internet transforming the auto industry's supply side. The auction is part of a major effort by GM and its crosstown rival, Ford Motor Co., to transform their huge purchasing operations by harnessing the power, reach and speed of the Internet. Both companies are rapidly developing systems to auction surplus equipment and purchasing parts and commodities in cyberspace to reduce the time and cost of buying goods. The automakers say by aggregating their purchases with those of their suppliers, they can drive prices down while speeding the process. It's part of GM's transformation into a faster, Internet-type company.
Internet auctions are big business.
GM's TradeXchange Internet portal enables the automaker, its 300,000 suppliers and other companies to buy and sell everything from factory equipment to office supplies online. The potential savings from a faster, more efficient online system is enormous. Companies that log onto the Web site can shop or sell through an online catalogue with more than 200,000 listings, make requests for quotes online or make online bids at virtual auctions. Also on Thursday, Maynards Industries Ltd., a Vancouver, British Columbia, auction house, was the first GM supplier to auction off stamping presses from another company on GM TradeXchange. The online auction works much like EBay and other Internet auctions.