RIB Software AG (RSTA) starts xTWO market, the first independent B2B marketplace for the construction industry
Stuttgart, 25 September, 2015. The first independent B2B market place for construction material will start under the brand xTWO market in Q1 2016. RIB aspires to make xTWO market the world leading eCommerce platform for construction material.
The current order process for construction material is mainly manual, error-prone and redundant. xTWO marketplace will offer a much more efficient process It is expected that increased transaction efficiency has the potential to save buyers and sellers up to EUR 5 bn annually.
RIB's iTWO technology provides productivity improvements in planning, estimation and delivery of projects for around 100.000 customers. This customer base alone accounts for a total purchasing volume in building materials of approx. EUR 50 bn. Furthermore the xTWO market will be accessible to any other customer for purchasing and any supplier of construction products as sales channel.
For its professional customers, xTWO market offers a price comparison tool for products of leading suppliers. xTWO provides transparency on wholesale prices but can also handle customer specific pricing arrangements. As a unique feature xTWO market can automatically optimize the price of the whole order basket. Buyers are supported in choosing the right product mix by optimizing prices and delivery dates according to the requirements of the project.
For its suppliers, xTWO market is offering an ideal, additional sales channel. Having the option to offer anonymously, the supplier can participate in the fast growing eCommerce market while at the same time not threatening important offline business with existing customers. Suppliers can easily manage their offer in terms of delivery region, assortment and price. Leading suppliers have already committed to participate in the xTWO marketplace, seeking to be first movers in securing online market share as well as lowering transaction costs through this online sales model.
Some suppliers are understandably concerned that an online marketplace will lead to another round of price erosion. However, there is growing evidence from other industries that this concern has no basis. On the contrary it is found that price transparency and savings from lower processing costs outweigh the perceived risks by far.
RIB Software AG is a 75% shareholder in xTWO market GmbH. The new company has access to sufficient capital, resources and infrastructure to achieve its market share ambitions. 25% of the shares are held by Frank Weise, a recognized expert in the field of online eCommerce solutions for the construction industry. Frank Weise is appointed as CEO of xTWO market GmbH. Michael Menz will take over the lead of sales and marketing. Previously, he was executive board member at Ytong AG, responsible for sales, and held positions as general manager at Glunz AG and Finnforest.
Frank Weise is convinced that "the future of the construction industry crucially depends on its capability to capitalize on the potential from digitalization. xTWO market is offering a neutral and independent marketplace to assure the sustainable competitiveness of our partners with efficient transaction processes".
About RIB Group
RIB Software AG is an innovator in construction business. The company creates, develops, and offers iTWO³ - new thinking, new working method and new technology - for construction projects across various industries worldwide. iTWO today is the world's first Cloud / License based Big Data 5D BIM enterprise solution for construction companies, industrial companies, developers and investors. Since its inception in 1961, RIB Software AG has been the pioneer in construction innovation, exploring and bringing in new thinking, new working method and new technology to enhance construction productivity, and transforming the construction industry into the most advanced and digitalized industry in the 21st century. RIB is headquartered in Stuttgart, Germany, and listed in Prime Standard Frankfurt Stock Exchange since 2011. With about 700 talents located in over 30 offices worldwide, RIB is serving 100,000 clients including construction contractors, sub-contractors, developers, owners, investors and governments, in the field of building construction, infrastructure, EPC sector and more.