Paperless transactions "top off" PE purchases

Rexam buys resin online twice monthly to supply its closure manufacturing operations. Rexam declined to identify how much it spends online. Rexam’s purchasing manager, Bill Weinert, says he does miss the human interaction aspect, but he feels that electronic is the way to go. “It gives us easy and quick access to place and track our orders,” he says. The reduction in time and cost provided by paperless transactions is what Weinert tells Net Sourcing he enjoys most about e-commerce. “Paper transactions that used to cost an average of $1.50 now cost an average of about 50 cents,” he says. Eastman provides a password-protected private “customer center” for Rexam and all its customers. After logging in, customers can place an order, review order history, check shipment status, or look at product data sheets. When Rexam makes online purchases, payment is handled offline via a faxed invoice sent by Eastman after the material has been shipped. Weinert indicates one potential drawback: “With face-to-face negotiations, the cost of plastics can decrease and become more competitive,” he says. “You cannot negotiate prices online. The cost is exactly what the system has in place.” The way in which price negotiations can take place online is through Eastman’s invitation-only auction site at www.eastmanmarketplace.com, where off-spec materials are sold.