Embraer, ATR team for e-marketplace

Embraer and ATR have formed AEROChain, a new e-business marketplace aimed at improving commercial relationship with its customers and suppliers. This enterprise represents an investment of US$21 million by the Brazilian company and ATR.

The new enterprise will be fully operational in the second quarter of 2002, although over US$ 4.1 million in quotations and US$ 1.9 million in sales have been already recorded between January and April of this year, as part of a try-out period involving a few customers and the Legacy System CIS (Customer Integration System), the current of Embraer presence on the Internet.

KPMG Consulting, Inc., one of the world's largest consulting companies will provide integration services and manage the overall project, which incorporates a suite of ORACLE software solutions, including ORACLE Exchange.

The solution adopted by Embraer and its partners for creating AEROchain (www.aerochain.com) was to set up a true Internet company, not just another dot.com company.

Embraer decided to join forces with other world- leading companies in their fields instead going for a fully-owned venture, as Vice-President for Customer Services Artur Coutinho explained: "Our goal is to trade the majority of Embraer spare parts and non-related aircraft goods through this new company which incidentally will be fully independent. When we started to analyse the options to establish our e-marketplace, we considered both a 100% owned company and a joint-venture. The second concept showed to the best option".

According to Coutinho, the operational structure chosen uses Embraer's brick-and-mortar image to reinforce the idea of a hybrid company producing real, commercially-offered goods to the public through the world-wide web.

ATR Customer Services' Senior Vice President Roberto Bellino highlights the benefits of AEROChain for ATR Operators, "Through this project, jointly developed with Embraer, ATR is pleased to provide its customers with a faster and easier access to the services we offer. This tool will also allows ATR to enhance the range of support services covering all areas of airline operation."

AEROChain will be US-based and the commercial structure will be available to customers and suppliers, providing supply chain management, MRO (maintenance, repair and overhaul) techniques and technical services. On a stand-alone basis, Embraer involves some 550 suppliers and over 170 potential customers.

ORACLE Corporartion will provide the technology used in AEROChain, based on its experience with B2B solutions. "Oracle know-how in the aviation industry was fundamental for Embraer's decision,"said Luiz Meisler, president of Oracle do Brasil and President for Latin America

REF XQQAS XQQCR