Despite a high-profile launch last summer, Exostar has been flying beneath the radar much of the time.
So far, the e-market has focused mainly on indirect procurement. It has signed up 50 suppliers, 15 of which have catalogs up and running on the e-marketplace. It also has held a handful of reverse auctions, including deals for bulk direct materials such as aluminum and steel, said Stephen O’Sullivan, Exostar’s exec VP-sales and marketing.
"Our four founding members are each actively trading on the exchange," O’Sullivan said, adding that the companies have saved an average of 10% on transactions made over the exchange.
In March, the exchange will be upgraded to allow its members to do direct materials procurement via dynamic pricing systems, O’Sullivan said.
Still to come is a decision on which vendor to use for supply chain collaboration. Exostar’s core technology provider is Commerce One Inc., so a deal with Commerce One partner SAP AG for supply chain tools may be in the offing. "We haven’t made that decision yet," O’Sullivan said.
Exostar is also determining its sell-side strategy, in which its members would use the exchange to sell to its customers, such as the airlines.
Exostar has yet to add any new buy-side members, such as second tier aerospace vendors. But "we’re talking to everybody," O’Sullivan said.