E-commerce revolutionises auction houses - Brief Article

Eurofood, August 31, 2000

A company called aucxis, which is revolutionising the auction markets across the globe, highlights the continuing trend of e-commerce playing a pivotal role in all areas of the food industry. Aucxis is the a leading e-business services provider to perishable commodity marketplaces. The company believes implementing e-commerce technology in the auction markets around the world provides a number of advantages to auction houses, buyers, and sellers through eliminating inefficiencies.

First launched as e-Auction Global Trading in 1998, aucxis now has a customer base of over 100 e-marketplaces and handles over 125 000 transactions per hour. The largest sectors in which it operates are the fish, fruits and vegetables, and flower markets, with annual sales totalling US$400bn (440bn [European Dollar]) worldwide, and US$150bn in Europe. The group already has a strategic partnership with the largest Dutch bank ABN Amro, which will provide integrated financial services to its customers. Luc Schelfhout, the man behind Schelfhout computer systems, and a key member of the management at aucxis, told Eurofood that aucxis brings transparency to the marketplace and a range of advantages. For buyers, the system gives better access to the supply markets, and reduced costs on the financial services aucxis provides. For the seller, there is broader market accessibility, price transparency and a more efficient market.

To participate in the system, buyers must have a letter of credit from their bank, and all debts must be paid within a week of the purchase, therefore maximising the capital available.