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e-Business in the chemical, rubber and plastics industrycompanies can achieve an 80% reduction in order entry time and a 20% reduction in thenumber of order changes; in procurement, Elemica expects a 75% reduction in invoiceerrors, 60% in order processing time and 50% in payment processing time. 98 Even ifthese figures are biased toward the optimistic side of the range, for larger companiessuch gains in process efficiency can translate into significant savings. Celanese, forexample, one of the users of Elemica, is quoted to have realised cost savings of overUS$ 700k by managing their logistics through Elemica. 99 The following business exampleshows how one of the founding members of Elemica, BASF, uses Elemica's invoicingsolution to introduce a large scale e-invoicing scheme.As most of the large chemical companies use a multi-channel approach to e-business,there are different options how to connect with suppliers or customers. Options typicallyinclude connection via the extranet portal, via EDI, or through intermediaries such asElemica. The following business example shows how a chemical company responded tocustomer requirements to set up online ordering, but convinced the customer to use adifferent channel than the one initially proposed by the customer.Examples demonstrating why and how companies work with Elemica are provided in thecase study on Elemica in Section 5.3.cc-hubwoo – e-procurement and sourcing service providercc-hubwoo Group (www.cc-hubwoo.com) is a leading global service provider of e-procurement and e-sourcing solutions ("Source-to-Pay") and in supplier networkmanagement. The company offers its customers on-demand supplier relationshipmanagement solutions which allow large companies to automate purchase andprocurement processes, connect with suppliers, access electronic catalogues andexecute electronic transactions. It argues that suppliers benefit as well through reductionsin transaction and settlement costs.This history of cc-hubwoo is one of mergers and acquisitions of different initiatives afterthe shakeout in e-marketplaces and thus a typical story of the new economy crisis afterthe stock-market crash in 2001.Milestones in the history of cc-hubwoo / cc-chemplorer 1002000: Avisium founded in partnership agreement with SAP; Hubwoo.com floatedon the New Market of the Paris Bourse2001: Merger of the marketplaces cc-markets and chemplorer, forming a jointmarketplace (cc-chemplorer), the leading German e-procurement platform2003: Merger of the marketplaces Hubwoo.com and Avisum2004: Merger of the marketplaces Hubwoo-Avisum (French) and cc-chemplorer(German) into cc-hubwoo Group2005: Acquisition of Trade-Ranger by cc-hubwoo Groupcc-hubwoo offers a range of different solutions, which basically have in common that theyaim at facilitating e-procurement activities of its members. As such, it can be considered a"marketplace"; however, a comparison with typical and well-known marketplaces in the9899Elemica – Connect once connect to all. Company presentation by Mike Mc Guigan, May 2007,p. 12.ibid.100 cf. http://www.cc-hubwoo.com (History).77

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