Spenda Ltd (ASX:SPX) is now the preferred supplier of Capricorn Society Ltd to deliver the first phase of its Digital Service Delivery (DSD) initiative.
The new agreement between the companies builds on a 20-year commercial foundation that now extends into e-commerce.
It also builds on Capricorn’s existing CAPLink infrastructure, part of the services delivered by Spenda to Capricorn under the Software, Services and Maintenance contract that expires in June 2024.
Under the new agreement, Spenda will substantially increase its services to Capricorn under the current Software, Services and Maintenance contract and start delivery of the DSD project, the first phase which will be to deliver CAPCharge to Capricorn’s Member and Supplier network.
CAPCharge incorporates various components of the Spenda product suite, including Pay-Statement-by-Link, the Payment Widget and Spenda’s inside sales capabilities.
CAPCharge Transaction Flow.
The upgraded agreement between SPX and Capricorn further opens up the latter’s vast network of members.
Capricorn is a member-based organisation established in 1974 to support businesses in the automotive industry. Its current network consists of more than 26,000 members and in excess of 2,000 preferred suppliers across Australia and New Zealand.
Capricorn’s members purchase around $270 million per month in parts from their approved supplier network.
Spenda’s CEO and managing director Adrian Floate said, “We’ve been working with Bradley and the team at Capricorn for many years.
"We helped Capricorn to deliver CAPLink to its suppliers to automate its transaction capture and credit approval. 20 years later, we are excited by this challenge as Capricorn moves to its next chapter and creates a range of digital services.
"Being selected to work with Capricorn on this significant project shows faith in both our services and our ability to deliver to Capricorn’s vision.”
DSD initiative
The initial DSD project works will be carried out over an eight-week period and it is anticipated Spenda will receive an initial agreed fee of $152,000 (exclusive of GST) per four-week cycle, effective from May 2023.
The fees may increase or decrease depending on the hours and scope of work each week cycle.
Beyond the DSD project phase, further engagement of Spenda is likely to be required to help with development and ongoing maintenance, software and service requirements. The current contractual commitment for fees paid under the DSD project is currently limited to each four-week cycle advance payment by Capricorn.
In terms of its solutions, Spenda’s Pay-Statement-By-Link will be tailored to enable Capricorn members to view their live statement, claim credits, integrate purchases into the financials and pay their Capricorn account.
Further to this, Spenda’s Payment Widget will be tailored to enable member purchases to be charged to the Capricorn account via supplier eCommerce solution.
Capricorn is focused on releasing its digital capabilities across all its membership via implementations with selected eCommerce 'ready' suppliers.
Looking forward, it will look to invite all eCommerce capable suppliers into the program, with support to access Capricorn eCommerce services powered by Spenda.
Once the first phase is complete, Spenda and Capricorn will work towards entering into a new full-form Software, Services and Maintenance agreement that incorporates software licences for the Spenda platform, as well as maintenance of CAPLink infrastructure beyond the current contract expiry date of June 2024.
“We have had a long-term partnership with Spenda and we are looking forward to growing this relationship further as we work together to build our digital technology platforms to enhance our online member experience,” Capricorn CEO (Automotive) Bradley Gannon said.
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