Goodyear ready to burn rubber in online deal

Tyre supplier Goodyear is set to make tracks online after inking a deal with e-sourcing company Ironside.

The deal will allow over 7,500 Goodyear dealers in Europe to use the internet to improve the efficiency of their ordering processes.

The order management system will be integrated into Goodyear's ERP system to simplify the order entry, order tracking and inventory processes.

George Rietbergen, director of ebusiness at Goodyear EMEA, explained that the move is not just about reducing costs but allowing companies' dealers more control.

"We will be putting in place a set of online functionalities for other customer groups and end consumers," Rietbergen said.

However, Rietbergen would not be drawn on whether this will lead to further deals with Ironside.

Both companies already have an arrangement in Latin America, where there are dealers that have given up phone orders for electronic ordering via the Ironside system.

While vendors on the buy-side - most famously Ariba and Commerce One - failed to follow through with their B2B promises, Ironside appears to be making solid progress. The buy-side vendors completely overlooked the needs of suppliers and the importance of their involvement in the overall B2B chain.

In targeting suppliers, Ironside is reaping the rewards.

Alan Lawson, research analyst at the Butler Group, explained Ironside is making a go of things because it is selling a technology that is turning in results for customers.

"The technology has real potential to save money. There is still caution amongst customers, but the understanding is there. There is going to be a turnaround and we will see more supply chain and B2B deals emerging in the coming months," he said.