Operations
ABC Internet Marketplace is a collection of database servers, as well as Web servers, housed in a physical location known as a center (or node). The customers inquire or order via the World Wide Web. The data is collected, processed, and stored in our databases. The processed data is then sent back to customers via the Web in the form of market data or executed trade. If an order is executed, the database "clears" the trade within an escrow account. This is accomplished by transferring money from a customer's fiduciary account to an escrow account via its link to a financial institution. The customer is required to deposit money in the fiduciary account before a trade can be executed.
If the physical delivery is to be made, the database collects the supplier's input and upon order confirmation generates a pro forma bill of lading. The bill of lading will be transmitted to an international carrier for release of goods and immediate dispatch.
Center locations: ABC Marketplace consists of 28 interconnected centers in different geographical locations. The location of a center is based on the marketplace of the product and the product's proximity to producers and consumers. For example, for electronics components, we have chosen Taiwan, Japan, Singapore, Germany, and the United States. Each center operates during its local time and has on-site personnel. Sensitive data are interchanged among the centers via VPN (includes clearing); otherwise, all centers are available to users for all transactions on the Web. Although the clearing is performed in a single location, the settlement takes place in the center where the match has been made.
Center resources: Each center is equipped with its local database server, Web server, data bank, and other auxiliaries. A database administrator will head the locally operated databases.
Each center will be operated by a number of product specialists whose main function is to monitor the products' sources of supply and update the specification of the products. The number of product specialists will roughly equal one individual for one sub-subgroup of product (for example, for passive components, there will be one individual responsible for ceramic capacitors). The product specialist will also act as a liaison between the manufacturer (producer) and ABC Marketplace. The product specialists will routinely dispatch an inspection team to designated warehouses so as to ensure product quality.
Center management: A regional marketing manager directs all operations, including customer service, sales, and employee affairs. Any professional service such as equipment leasing or advertising will be performed on the regional level. Except for the accountant, all staff members are compensated on salary and commission.
Fiduciary account for the first center: ABC Marketplace intends to open a general fiduciary account with BankBoston and to install the Microlink. ACH transactions will be set up for the users of ABC Marketplace in the United States. A user intending to deposit money into the ABC fiduciary account will initiate the process through the ABC trading platform. The process of initiating the ACH transaction will occur at regular intervals. Each deposit will be associated with a unique identifier allocated to the particular user. ABC Marketplace will also use a similar setup, the Bostonnet, for collecting information on the wire transfers. This will be especially valuable for international users for whom an ACH transaction cannot be set up.
Delivery of physicals: ABC Marketplace will require suppliers that wish to list their offers to deliver their goods to our designated bonded warehouse. These warehouses are subleased areas from the select locations within the existing international carrier-bonded warehouses.
Abc Marketplace's Future Plans
From the start of operations, ABC will benefit from a consistent high-growth pattern. The company has been fortunate to have identified and hired extremely qualified and motivated senior management. Senior management has concentrated its attention on the development of the ABC platform software system and believes this will be the primary reason for the company's success. ABC is currently pursuing the completion of the beta version of the software program.
Upon achieving the funding referred to in this plan, ABC intends to fully test its trading platform system and then proceed with its companywide expansion. ABC will proceed with additional expansion in products and geographical locations as revenue increases with trading activity.
System History
ABC Marketplace has been in development since early 1998. In August 1998, ABC Marketplace contracted with Mindware Pertech, Inc., an international consulting firm specializing in client server and Internet development, to code the system.
The product development team at ABC Internet Marketplace is headed by Martha Pranik, Ph.D. in computer science (JU). Mr. Delip Gupta, Ph.D. in economics (Princeton) and a team of project managers, project leaders, and programmers all assist Mrs. Pranik.
System Status
The alpha version was delivered in early June 1999 and is now being tested. The beta version, which is in development, will require four months to develop and will include all bug fixes, interfaces to the bank, and a package delivery service.
System Plans
ABC Marketplace will allocate $6 million over the next five years toward system development. ABC Marketplace is acutely aware of the need to continually provide additional functionality and incorporate technologies that will improve performance. Furthermore, in the near future, ABC Marketplace plans to include multilanguage support.
