The first independent B2B market place for construction materials 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’s mother company, 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“.