Online trading exchange system developer Viewlocity is to provide an integration tool for the Ministry of Defence’s new e-commerce system – the Defence Electronic Commerce Service, which is currently under development by IT consulting firm Cap Gemini Ernst & Young.
DECS is expected to slash the cost of MoD procurement dramatically. The Defence Logistics Organisation (DLO) has an overall annual budget of £4.6bn per year and spends £2.5bn with trading partners.
A large percentage of this spend looks likely to be channelled through DECS, which will play a major part in a bid to achieve 20% savings over the next five years.
In addition, the new online trading exchange supports the DLO’s Lean Support Chain initiative which aims to significantly reduce costs in the MoD’s supply chain and shorten delivery times. Extensive delays over recent years are continuing to cost the country hundreds of millions of pounds.
The DECS online trading exchange will enable the MoD to conduct business electronically with suppliers across all industry sectors. Cap Gemini Ernst & Young selected Viewlocity’s AmTrix product to enable the MoD’s trading partners to communicate across disparate systems, connecting them to the DECS online trading exchange in a fraction of the time normally associated with software integration tools.
Chief executive at Viewlocity, Greg Cronlin said: `Though Viewlocity has provided logistics integration products to consumer and electronics industries, this is our first defence-related project, and we anticipate further growth in this sector.’
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