Clothing maker Guess is building an online trading exchange that it plans to open to suppliers and business partners, from button-makers to cloth manufacturers.
The designer of jeans, apparel, and accessories today said it's partnering with online software firm Commerce One and business management software maker PeopleSoft to create a business-to-business online marketplace for the apparel industry.
Online business-to-business sites are becoming increasingly popular as a growing number of companies seek faster and easier ways to do business with their buyers and suppliers.
New York-based Guess said the new marketplace will be called the Apparel Buying Network.
Guess plans to launch the first phase its new network, an online purchasing catalog for Guess employees, Guess-branded accessory makers and suppliers, by the first quarter of next year. The second phase will include opening the site to those in the textile industry to bid for and buy items such as buttons, zippers or cloth. A third phase will open trading among textile and apparel buyers and suppliers.
Guess technology director Craig DeMerit said the company wants to eliminate the need for paper-based transactions by automating manual procurement processes. Guess already uses business management software from PeopleSoft to help automate its human resources needs.
Establishing an online marketplace will help reduce procurement from up to a week to one day or less, DeMerit said.