Business

SciQuest.com’s
B2B E-Marketplace

Presented By:
Vijay Mangal
Joydeep Das
Anuj Gupta
Saurabh Sharma
SciQuest.com

 Founded in 1995s
 Offered scientific and laboratory products on
website
 Founded by Peyton Anderson, Scott Andrews and
Keith Gunter
 former sales professionals for Baxter scientific
Product
 Company launched an informational website and
product-sourcing service in 1995
Cont’d…
 Its plan was to develop e-commerce website.

 Partnership with leading software solution

providers such as IBM, Oracle, Ariba, and
Commerce One.

 The company needed to build the e-marketplace

from scratch, including back-end transaction
process such as fulfillment an accounting.

 Company evaluated many e-commerce product in

the market, finally settling for IBM’s offering in
1998.
Need of the Technology
 Professionals were frustrated with the traditional
paper-based product ordering process

 Suppliers used two sales channels –

traditional distributors and direct sales

 This sales channels were often expensive

 Then launched a business-to-business e-market

place in1998
About the Technology
 In September 1998, SciQuest implemented the
OBI compliant Net. commerce solution

 At the heart of SciQuest’s online catalog was DB2

 It helps to eliminate much of its customers’

procurement paperwork
SciQuest B2B E-Marketplace
Search multiple Items shipped
Suppliers, creates Scientific buyers
“directly” to customer
One purchase order

SciQuest.com
Sends consolidated
Invoice to customer
SciQuest.com Supplier’s
Inventory
Suppliers bill
SciQuest.com

Order delivered
electronically Supplier’s
Ordering
System
Cont’d…
 SciQuest used RS/6000 enterprise server
model H70 server and the HTTP server

 Net.Data macros and JavaServer

Pages(JSP) helps to delivered the results to
the user’s web browser.

 MQSeries helped SciQuest to dramatically

reduce development time and helped in
transaction between suppliers and
receivers.
SciQuest’s Products and
Services
 Marketplace Solutions
 Sourcing Guide
 SciQuest.com Auctions
 SciQuest.com LabDeals
 SciQuest.com Resources
 Source Book
Shortcoming and Solution
 User sessions increased more than 100,000 per
month in oct.1999

 Order management system was not made to

handle this kind of problem

 SciQuest entered into an agreement with

“Yantra” through PureEcommerce

 Introduced a training program to help its

customer service representatives
Achievement
 It attempted to position itself as a vendor neutral partner for both
buyers and suppliers.

 It secured over 100 enterprise customers and contracts with 850

suppliers.

 The company had more than 1.5 million stock keeping units.

 About 300 transactions were handled through the exchange each

day involving 700 orders to suppliers

 The company’s catalogue had increased to one million product

suppliers and research organizations
Failures
 Being increase in revenue year by year,
company was facing deficit regularly

 Year Revenue Deficit

 1998 $0.48 mn $4.22 mn
 1999 $3.88 mn $33.17 mn
 2001 $23.26 mn $82.83
mn
Suggestion
 The idea was good

 Operating expenditures which can be

reduced.

 If deficit is increased continuously then it

is better to a company to stop down it.

 They should do more improvement on its

policy.