Mitch Free
Founder / CEO
Quiz
In English, what do you call a person who speaks 2 languages?
What do you call a person who speaks 3 languages?
Bi-Lingual
Tri-Lingual
What do you call a person who only speaks 1 language?
Tri-Lingual
American
MFG = Manufacturing
Hi, Mitch--
What you folks are doing is just about the most interesting and fascinating use of
the Internet in manufacturing that I've seen to date. It really leverages the full
power and immediacy of the Web.
Best,
-- PQ-- PQ
Paul Quinn
Senior Writer/Features Editor
Supply Chain Systems Magazine
What does MFG.com do?The global online
marketplace where
buyers and
suppliers meet
each other at the each other at the
right moment in
time, collaborate
and do business
together.
Much more powerful
than a directory.
Buyer Suppliers
Request
For
Quote
Basic Concept
Matched to the
RIGHT Suppliers
Quotes Returned
Online in a Standard
Format
Private Quoting, Not an Auction
MFG.com Facts•Largest Online Marketplace for the Manufacturing Industry
•Founded in 2000
•Offices in Atlanta, Paris, Geneva, Munich, Shanghai
•Operates in 9 Languages•Operates in 9 Languages
•Facilitates~ $11 Billion USD in Transactions Per Year
•~200,000 Companies use MFG.com for Sourcing
•~10,000 Companies use MFG.com to Find Customers
• Privately Held (Mitch Free, Jeff Bezos, Fidelity Investments)
Important Marketplace
Manufacturing is the largest of all
economic sectors in the world!
Everything physical is manufactured. Just look around you and on you
A Stapler
Plastic Injection Molded
• Die Making
• Mold Making
• Screw Machining
• Metal Stamping
• Plastic Molding
• Rubber Molding
• Spring Making
Making a Stapler Involves:
Metal Stamped / Die Formed
Screw Machined
Molded Rubber Pad (on bottom)
Custom Spring• Spring Making
• Assembly
Global Ecosystem
Value to Participants
When a buyer with a need connects with a supplier that has the
right capacity, expertise and credentials at the right moment in
time the buyer gets great pricing and supplier gets a profitable
order.
Online marketplaces allow people and companies to connect that Online marketplaces allow people and companies to connect that
never could have found each other previously.
MFG.com Participant Fees
• Buyers – Free
• Suppliers Pay ($5,000 to $12,000 per year)
•No Commissions of Transaction Frees
•Ability to Discover and Quote RFQS
•Buyer Contact Info
•Inclusion in Supplier Discover Database
•Search Engine Optimized Profile
Economic Indicator ?
500600700800
$ USD Value (millions) Sourced on MFG.com
(Last 12 Months)
0100200300400500
Top Categories
Textiles
Metal Casting
Machining
Metal Stamping
Plastic MoldingPlastic Molding
Trends
•Smaller and More Frequent Orders
•Distributed Manufacturing
•Multiple Sources
•Brand Ownership; No Factories
•Customization
Successful Marketplaces
•Many Buyers and Many Sellers (Highly Fragmented)
•Marketplace Owner is a Neutral Party with Domain Expertise
•Has Brokers / Agents that are Ripe for Disintermediation
•Flat Fee Revenue Model to Sellers
•Policed by the Online Community (Rating Systems)
•Facilitates Online Collaboration, Due Diligence, Quoting, Ordering
•Extensible – Integrates with Other Business Systems
Successful Participants
•Comfortable on the Internet
•High Speed Internet Connection
•Global View
•Understand of Their Unique Advantages
•Good Communication Skills
•Good Marketers
Suggestions for Colombia• Invest in Internet Infrastructure
• Help Manufacturers Create and Exploit Unique Advantages
• Don’t Try and Compete with China – Differentiate
• Trade Agreements
• English as a Second Language
• Encourage Participation (Incentivize)
• Market the Successes
New World Economy
• Access to New Markets Like Never Before
• Markets are Shifting
• Wealth is Created by Making Things (Manufacturing)• Wealth is Created by Making Things (Manufacturing)
• The Divide Between the Wealthy and Poor Will Grow Wider
• Time is of the Essence
To those who can’t
hear the
music, the dancers music, the dancers
appear insane.
We are in this together…