Brazilian software development group Totvs (Bovespa: TOTS3) has signed a partnership agreement with Florianópolis-based software firm Paradigma to provide procurement and sourcing solutions, the latter said in a statement.
"We are taking the social network concept to the business world," Paradigma chairman Gérson Schmitt said.
Last month, Paradigma launched ClicBusiness, a solution that brings together under one platform representatives from 45 e-procurement portals, involving a base of some 200,000 providers.
Through this agreement, ClicBusiness will be offered to Totvs' 26,000 customers for 90 reais (US$56) a month, regardless of the volume traded.
Paradigma is aiming for more than 1mn subscribers to employ this service, equivalent to roughly 20% of the companies in the country.
According to Paradigm, the electronic system can halve the time and cost of the procurement process, and the price of goods and services purchased by at least 5%. In government purchases, price reduction can reach 25%.
Silvio Motta, Totvs director of operations, stressed that the solution is not only applicable to small and medium enterprises.
Paradigm also provides software for capital markets - having participated in projects for the Brazilian commodities exchange (BBM) - and for electric power auctions. With about 80 employees, Paradigm moved 8.7mn reais (US$5.5mn) in 2010.
Totvs posted a net profit of 33.5mn reais in the first quarter of the year, climbing 20.5% compared to the year-ago period, while revenues reached 305mn reais, up 17.1%.