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Mitch Free
Founder / CEO
Quiz
In English, what do you call a person who speaks 2 languages?
                 Bi-Lingual

What do you call a person who speaks 3 languages?
                Tri-Lingual

What do you call a person who only speaks 1 language?


             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

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
               right moment in
               time, collaborate
               and do business
               together.

               Much more powerful
               than a directory.
Basic Concept
     Buyer                                             Suppliers
            Request
                                     Matched to the
              For                    RIGHT Suppliers
             Quote




                      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

•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
                                                   Making a Stapler Involves:
                                                              • Die Making
                                                              • Mold Making
Plastic Injection Molded                                      • Screw Machining
                                                              • Metal Stamping
                                                              • Plastic Molding
                                                              • Rubber Molding
                                                              • Spring Making
              Custom Spring
                                                              • Assembly


                                          Screw Machined




                               Metal Stamped / Die Formed
                 Molded Rubber Pad (on bottom)
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
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 ?

      $ USD Value (millions) Sourced on MFG.com
                   (Last 12 Months)
800
700
600
500
400
300
200
100
  0
Top Categories
         Textiles
         Metal Casting
         Machining
         Metal Stamping
         Plastic 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)

• 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
appear insane.
Mitch Free
 Founder / CEO
mitch@MFG.com
We are in this together…

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E- maketplace, una estrategia empresarial exitosa

  • 1.
  • 3. Quiz In English, what do you call a person who speaks 2 languages? Bi-Lingual What do you call a person who speaks 3 languages? Tri-Lingual What do you call a person who only speaks 1 language? American
  • 5.
  • 6.
  • 7. 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 Paul Quinn Senior Writer/Features Editor Supply Chain Systems Magazine
  • 8. What does MFG.com do? The global online marketplace where buyers and suppliers meet each other at the right moment in time, collaborate and do business together. Much more powerful than a directory.
  • 9. Basic Concept Buyer Suppliers Request Matched to the For RIGHT Suppliers Quote Quotes Returned Online in a Standard Format Private Quoting, Not an Auction
  • 10. MFG.com Facts •Largest Online Marketplace for the Manufacturing Industry •Founded in 2000 •Offices in Atlanta, Paris, Geneva, Munich, Shanghai •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)
  • 11. Important Marketplace Manufacturing is the largest of all economic sectors in the world! Everything physical is manufactured. Just look around you and on you
  • 12. A Stapler Making a Stapler Involves: • Die Making • Mold Making Plastic Injection Molded • Screw Machining • Metal Stamping • Plastic Molding • Rubber Molding • Spring Making Custom Spring • Assembly Screw Machined Metal Stamped / Die Formed Molded Rubber Pad (on bottom)
  • 13.
  • 15. 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 never could have found each other previously.
  • 16. 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
  • 17. Economic Indicator ? $ USD Value (millions) Sourced on MFG.com (Last 12 Months) 800 700 600 500 400 300 200 100 0
  • 18. Top Categories Textiles Metal Casting Machining Metal Stamping Plastic Molding
  • 19. Trends •Smaller and More Frequent Orders •Distributed Manufacturing •Multiple Sources •Brand Ownership; No Factories •Customization
  • 20. 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
  • 21. Successful Participants •Comfortable on the Internet •High Speed Internet Connection •Global View •Understand of Their Unique Advantages •Good Communication Skills •Good Marketers
  • 22. 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
  • 23. New World Economy • Access to New Markets Like Never Before • Markets are Shifting • Wealth is Created by Making Things (Manufacturing) • The Divide Between the Wealthy and Poor Will Grow Wider • Time is of the Essence
  • 24. To those who can’t hear the music, the dancers appear insane.
  • 25. Mitch Free Founder / CEO mitch@MFG.com
  • 26. We are in this together…