Giants Team Up On E-Marketplace

International Paper, Georgia-Pacific Corp. and Weyerhaeuser Co. are jointly developing a global business-to-business online marketplace to buy and sell paper and forest products.

The paper and forest products industry leaders believe that a joint electronic marketplace will benefit customers by simplifying transaction processes, improving information flow and increasing speed of delivery, thereby reducing costs. They hope it serves as a foundation for common industry standards to simplify and accelerate industrywide adoption of electronic commerce.

Providing both procurement and sales functions means the online marketplace could enable participants to streamline purchasing operations, reduce inventories, cut internal costs and increase capital efficiency in the industry.

The business will operate as an independent entity with its own board of directors and management team. Initially, the three founding companies will hold equal equity positions, but expect additional partners to join. Based on its success, the companies eventually may take the business public.

The companies are searching for a chief executive officer for the new operation and are assessing potential technology partners.

The steering committee includes IP's executive v.p. Marianne M. Pars and v.p.-e-business John N. Balboni, GP's v.p.-e-commerce David J. Paterson and director-e-commerce Robert A. Renner, and Weyerhaeuser's senior v.p.corporate affairs Mack L. Hogans and v.p.-strategic planning Darien E. Roseen. Morgan Stanley Dean Witter will provide financial consulting services for this initiative.

Until the marketplace is up and running, which is subject to appropriate governmental and other approvals, the companies will continue to conduct sales and procurement activities as normal, including continuation of IP's previously announced relationship with PaperExchange.com.

"This initiative will aggressively shape the electronic marketplace in the paper and forest products industry to ensure our industry meets the current and future needs of our customers," said Steven R. Rogel, Weyerhaeuser's chairman, president and chief executive. "It will also promote better relationships with other trade partners, such as suppliers."

Special Orders Via Web

Payless Cashways, Inc., is developing a new e-commerce system to help streamline special orders and improve profitability.

The initiative is being tested with several vendors and one store before being rolled out with multiple vendors to all stores in the second halfofthe year.

The retailer hopes the business-to-business system will provide a variety of e-catalogs for each type of professional customer, such as electricians and plumbers.

To achieve this, Dennis Smith, Lewis Logan, John Cramer and Jim Hollingsworth have been reassigned to an e-commerce development team.