Firm connects buyers, suppliers. (E-commerce Special Report).

A new Thunder Bay company is bringing northwestern Ontario buyers and suppliers together utilizing a state-of-the-art automated notification system.

"The way it works is simple," says John Fullerton, president of Northernsupplier.com. Buyers submit tenders, and/or product information, by filling out a simple e-bus mess form. Northernsupplier's database matches he request to related suppliers and then forwards it to them. The supplier responds directly to the buyers with price quotes or product information.

The company's "growth is on target," and since going live in November we estimate we are already closing in on $1 million in tenders from buyers," says Fullerton.

Northernsupplier is also involved in gathering data for a two-year pilot project study for FedNor and the Thunder Bay Chamber of Commerce. The $450,000-study that is being funded jointly by FedNor. and the private sector through the chamber has two major goals, he points out.

"The first goal is to introduce a simple e-business tool to small- and medium- sized enterprises operating: in northwestern Ontario," Fullerton says. "The other goal is to get these businesses to look beyond their traditional marketplace."

Mary Long-Irwin, president of the Thunder Bay Chamber of Commerce, says chamber members "need to develop e-business skills because they are operating in a global marketplace."

Northernsupplier's task with the study is to gather data. A separate party will analyse the data and produce a report by Oct. 31, 2003.

Since starting in November, Northernsupplier.com has signed up more than 300 buyers on its system. The company began by identifying "key buyers, or the big spenders, in the public-sector economy, including hospitals, education boards, municipalities, and non-profit organizations," Fullerton says. "After signing (on) the key buyers in the public sector, Northernsupplier targeted the private sector and now has a major forest products company, mining companies and many medium and small enterprises."

Suppliers pay $1 per day for the service; buyers pay nothing.

"During the study the service is being offered to suppliers at 50 cents per day," Fullerton says.

One of the stipulations of the two-year study contract requires Northernsupplier to have 500 buyers submitting tenders and/or product information from across northwestern Ontario.

"We are going to exceed this number by far, considering the excellent response we have had so far," Fullerton predicts.

Fullerton says there are major benefits for both buyers and sellers using his company's procurement system. Buyers get quick access to pre-qualified vendors free of charge. Buyers get to choose not only how they wish to be contacted, but on what dates and at what time. There are huge savings of time, money and human resources, he notes. Buyers also get to develop their e-business skills and have the satisfaction of knowing they are supporting regional businesses.

The advantages for sellers are also numerous. First and foremost they get highly qualified sales leads, he says. They are notified of these leads by fax or e-mail. Sellers' customer acquisition costs are reduced and they get access to new regional markets. Their sales effectiveness is also increased, he adds.

Northernsupplier has three full-time employees. In addition, to Fullerton, Bill Cooke is the chief financial officer and KellyJo Pfaff is the customer services manager. There are also six commissioned sales staff.

The company has purchased print and radio advertising in Thunder Bay and the region to promote its service. Thunder Bay Telephone has been of assistance by positioning Northernsupplier.com on its Internet service provider page.

To ensure confidentiality all transmissions in the system are encrypted, he says.

Both buyers and suppliers must complete registration form and receive a username/password before they can access the vendor database. All information they provide is verified before access permission is granted. "This protects the integrity of the services and acts as a fraud deterrent," Fullerton says.