IBM Sets Up New Online Buying Pool

IBM Corp. is orchestrating a new Internet marketplace with 11 major telecommunications and electronics companies, joining the trend in many industries where rivals combine their buying power to deal with suppliers. The business exchange, expected to be announced today, is designed so that suppliers can place bids for business from major industry buyers, pushing down prices. It also will help buyers control their inventories of parts more effectively, avoiding unnecessary shipping and storage costs or a wasteful buildup of unneeded supplies. The partners in the new exchange, dubbed E2open.com, include major forces in electronics, communications networks and wireless technology.