KPMG Consulting: Experience in Digital Marketplaces in Latin America.

Digital marketplaces (DMPs) are changing the way business is done around the world. According to Victor Sanchez, "Companies in Latin America must increase their regional and global presence. To be competitive in today's market, they must be agile in buy-sell operations by providing a seamless, single point of access to buyers and providers of services and products from anywhere in the world. Digital marketplaces will make this happen.

The market potential for B2B transactions over the Internet in Latin America is estimated at $66.5 billion over the next four years. DMPs represent a growing portion of B2B transactions, estimated to be over 50% within the next three years. "Today's digital exchanges will evolve to private exchanges, also called Private Trading Networks (PTNs)," indicates Victor Sanchez. PTNs allow known, trusted trading partners to create web-based trading architecture in an effort to reduce supply chain costs. "The driving force behind the development of DMPs and PTNs is a business community that seeks to optimize its supply chain, increase its efficiency, lower costs and strengthen its competitive presence in regional and global markets."

The legal framework in which DMPs work is a defining factor. Victor Sanchez concluded: "Regulations on transactions that involve companies from different countries is a subject under development. Mexico, Colombia and Chile have made important advances in this area."

* SPEED AND EXPERIENCE.

The ideal combination for the successful development of DMPs

Solistica (www.solistica.com)

KPMG Consulting helped Solistica develop its sales organization in only 10 weeks.

Solistica is part of FEMSA Logistica, a company dedicated to providing logistical solutions to Grupo FEMSA and other companies. "The company contracted us to develop a market launch strategy for their Exchange that will allow it to position itself as the leader in logistical solutions for transportation, integrating buyers and sellers of transportation solutions," explained Carlos Manuel Perez, Managing Director for Consumer and Industrial Markets for KPMG Consulting in Latin America.

KPMG Consulting developed the communications plan, the sales strategy and competitor analysis, as well as communications elements for brand positioning, design and architecture of the web page, user interface and the Exchange's content -- everything necessary to enter the market successfully.

Entel (www.entel.cl)

The Entel Digital marketplace registered transactions of nearly $250,000 during its first day of operations. Entel is one of Chile's leading telecommunications companies, providing its customers with a wide array of value-added communications services. "KPMG Consulting developed this DMP in a record time of eight weeks," commented Gabriel Gary, KPMG Consulting Senior Manager for Internet Solutions for the telecommunications industry. In its second phase, the project will focus on electronic payment, integration and logistics.

Thanks to an aggressive market positioning strategy, the day of their launch, April 20, 2001, the firm saw twice as many participants than they had originally expected. In fact, they already had a client before the project was finished. Their first local client was Asociacion Chilena de Seguridad, a group of companies from the health sector that decided to make all their bids and purchases on this DMP.