Chevron Press Release - Chevron, McLane And Oracle to Form RetailersMarketXchange.com
B2B Joint Venture Creates Open Community MarketplaceDesigned to Provide Full Service to Convenience–Store and Small–Business Retailer Industry
Left to right: Grady Rosier, president/CEO of McLane Co.; Lawrence J. Ellison, chairman and CEO of Oracle Corp.; and Dave O'Reilly, chairman/CEO of Chevron Corp.
SAN FRANCISCO, CA, TEMPLE, TX, and REDWOOD SHORES, Calif., March 8, 2000 –– Chevron Corp., McLane Company, a subsidiary of Wal*Mart, and Oracle Corp. today announced their intent to create a joint venture called RetailersMarketXchange.com (opens a new browser window), an independent company which plans to offer the first Internet trade exchange designed as a full–service marketplace for all convenience–store and small–business retailers and their suppliers.
The announcement was made by Dave O'Reilly, chairman and CEO of Chevron Corp.; Grady Rosier, president/CEO of McLane Company; and Lawrence J. Ellison, chairman and CEO of Oracle Corp.
RetailersMarketXchange.com combines Chevron's proven Internet–based retail business model, the world–class fulfillment and distribution network of McLane Company, the largest convenience store distributor in the United States, and Oracle's leading e–business Oracle Exchange platform. Together, Chevron, McLane and Oracle plan to create an independent, open marketplace that will offer a variety of e–commerce services to all other trading partners in the industry.
Chevron, McLane and Oracle would each hold equity interest in RetailersMarketXchange.com. It is expected that retailers and suppliers who commit capital and participation will also be equity participants in the joint venture, which at inception would be the world's largest web–based business–to–business marketplace for the convenience store industry.
The new marketplace, planned to go online this summer, intends to be the catalyst for revolutionizing the supply chain to the highly fragmented convenience store ("C–store") and small–business sector. For suppliers, the marketplace has the potential to dramatically reduce costs in this $200 billion–a–year industry, to improve the marketing reach and effectiveness, and the efficiency of delivering products and services. For retailers, it creates access to the suppliers, programs and scale of a networked economy to dramatically improve their operations.
The new web–based marketplace will initially focus on convenience store retailers, providing them with the means to achieve significant cost savings and revenue generation. RetailersMarketXchange.com will be personalized from the retailer's point of view, combining the dynamic marketplace of a trade exchange with specialized software and services that deliver the brands, business systems, customer services and community networking that convenience store and small retailers need to run their business. The portal will include:
- A marketplace providing an unparalleled commerce community between supplier companies, retailer chains and individual retailers.
- The infrastructure for deployment of retail and product brand information and programs.
- Customer services to enable the transformation to a new, more efficient business.
- Business operating systems that enable the full use of RetailersMarketXchange.com and integrate the retailer's onsite operations with those of the suppliers.
- A dynamic, interactive online community network where retailers and suppliers can share information.
RetailersMarketXchange.com is based on the Oracle e–business platform and the Oracle Exchange software suite, which enables Internet supply chain networks to dramatically increase purchasing and operating efficiencies. With Oracle's customer relationship management suite (Oracle CRM), the exchange will be well–suited to the unique needs of the convenience and small–business retailer, based on the experiences gained from the Chevron Retailer Alliance business model. Optimization of supply–chain fulfillment and distribution will be leveraged off McLane Company's expertise.
"A few years ago, we realized how the Internet could significantly reduce our operating costs, transform our business processes, and establish a platform for growth," said Dave O'Reilly, chairman and CEO of Chevron Corp. "This continues the implementation of our strategy to identify, incubate, and participate in the creation of independent, open marketplaces, such as RetailersMarketXchange.com. (See the Chevron/Ariba Petrocosm announcement.) They will help us to reinvent the way we do business and lead us to higher levels of performance and profitability in the new economy."
"This is an evolutionary process for McLane," said Grady Rosier, president/CEO, McLane Company, Inc. "We have been actively engaged in bringing innovation and new ideas to the convenience store industry for many years. We firmly believe this alliance of Oracle, Chevron and McLane will dynamically impact the future in e–commerce for our retail partners. While we are likely to see many announcements regarding portal and vortal initiatives, RetailersMarketXchange.com will be in the marketplace effectively improving efficiencies for all of our retailers."
"Oracle is thrilled to be creating its third major industry exchange with leading partners like Chevron and McLane," said Lawrence J. Ellison, chairman and CEO, Oracle Corp. "These powerful online exchanges mark a turning point for whole industries racing to leverage the Internet for real economic gain in the new economy. Oracle provides the breadth of technology, software and services to fully power these exchanges, and to make industry–wide B2B commerce a reality."
Chevron and McLane Company's existing supply chain transactions would be the first activities to go through this exchange. Chevron and McLane, which just agreed to a new supply contract, expect to greatly enhance supply chain efficiencies with each other and with all of their manufacturers, distributors and retailing partners. McLane also plans to bring the energies and competence in electronic point of sale of its wholly owned subsidiary, Professional Datasolutions Inc. (PDI), to this venture.
"This is an opportunity for the marketplace to collaborate and re–invent the retail supply chain to the convenience and small business retailing sector around the power of the Internet," said Patricia Woertz, president of Chevron Products Co. "This would clearly be a win for all the channel partners."
Information about the new marketplace can be found at http://www.RetailersMarketXchange.com. Interested parties can also obtain more information by dialing 1+(877) 648–8928.
Chevron, headquartered in San Francisco, Calif., is a leading global energy and chemical company, operating in about 90 countries. Chevron employs about 31,000 people worldwide. Chevron Products Co. has 700 company owned–and–operated C–stores and about 6,500 branded C–stores that are independently owned–and–operated in the United States. C–bridge Internet Solutions consulted with Chevron on the development and implementation of the Chevron Retailer Alliance.
About McLane Company
McLane Company, Inc. provides nationwide distribution services to multiple industries throughout the United States, Brazil, and Taiwan. A wholly–owned subsidiary of Wal*Mart Stores, Inc.[WMT:NYSE], McLane delivers food and non–food products to convenience stores, mass merchandisers, and quick serve restaurants. Based in Temple, Texas, the company operates 16 distribution centers, an industry–specific software company, a third party logistics company and a contract carrier. In Brazil, McLane operates five distribution centers. McLane employs 10,000 people in the United States. Visit McLane's web site
Oracle Corporation provides the software that powers the Internet.
Oracle is a registered trademark of Oracle Corporation. Other names may be trademarks or registered trademarks of their respective owners.
A media and analyst conference call is being held at 11:00 am Pacific Standard Time. The dial–in numbers are 1–800–888–208–1815 (U.S.) and 1–719–457–2656 (international). The replay numbers are 1–888–203–1112 (U.S.) and 1–719–457–0820 (international), confirmation code 524968. Webcast: http://www.oracle.com/ebusinessnetwork/. For more information, call 1–650–506–4176.
Among the factors that could cause actual results at RetailersMarketXchange.com to differ materially are: (i) RetailersMarketXchange.com is at an early stage of development; (ii) the level of participation of retailers and suppliers in RetailersMarketXchange.com; (iii) the venture's success in attracting a management team; (iv) the effectiveness of the venture's Internet–based eCommerce platform; (v) the venture's ability to implement its business plan; (vi) factors and risks which adversely affect key participants in RetailersMarketXchange.com; and (vii) the attractiveness and the offerings of other competitors in this market. In addition, RetailersMarketXchange.com could be affected by general domestic and international economic and political conditions.
Updated: March 2000