Cortex Business Solutions is hoping a recent reseller agreement signed with Telus will be the first of many such relationships as the Calgary-based e-commerce and e-procurement services provider seeks to expand the breadth of its open access e-procurement network.
An e-commerce services vendor, Cortex has developed an e-procurement network that is designed to remove paper from the procurement process. Ryan Lailey, vice-president of business development and corporate strategy with Cortex, said the goal of the network is to improve efficiencies and reduce the cost of procurement for member companies.
“We eliminate paper and allow companies to communicate with each other regardless of what their accounting software is,” said Lailey. “Once connected, companies can communicate with their connected suppliers regardless of their backend.”
Each company pays a one-time fee to connect to the network, and then pays a monthly access fee and a small transaction fee. Of course, the success of the network is dependant on the number of members of the supply chain that take part. Last year, for example, a major project for Cortex was with Husky Energy. They tapped Cortex as their primary e-commerce provider, and encouraged their suppliers to join the network so Husky could eliminate paper from its procurement process.
“The buyer at the top of the supply chain spends a lot of money, and they have companies in their supply chain that are both suppliers and buyers, and they have suppliers of their own,” said Lailey, explaining how the network can grow.
While Cortex has been primarily focused on direct-sales to date, as the network grows they’re looking to channel partners for help. The first such agreement was recently signed with Telus, and will see the telco offer Cortex’s services to Telus customers in the energy sector.
“The sales, consulting and marketing capabilities of Telus will further accelerate the expansion of our service offerings to the energy sector,” said Lailey. “Through our relationship with Telus, Cortex continues to surround itself with world class organizations that understand the potential in the market to reduce costs, improve cash flow and financial controls for any company by utilizing Cortex services.”
Gaining critical mass in the energy sector is an important strategy for Cortex, said Lailey, and Telus will help with that goal. Where the channel will begin to play a larger role for Cortex, he said, is in expanding the size and breadth of the network even further.
“We’re looking at bringing on more partners,” said Lailey. “Telus provided important validation for us. This wasn’t an overnight deal, they’ve done a lot of work looking at the market and identifying solutions available they can bring to their clients.”
Cortex is interested in working with any partner or company, he said, that can enhance and increase the distribution of their network. Partners will gain both margin on the deal and a share of ongoing revenue.
“It could be another telco or it could be a consulting company,” said Lailey. “A lot of consultants do work for our target customers, and they could sell our solution as their recommendation for solving some of their issues.”