
MFG.com’s A.J. Sweat and Mitch Free
In my search for Atlanta based Web 2.0 companies I came across MFG.com; it is the match.com for connecting suppliers with buyers in manufacturing, and it’s proving to be one of Atlanta’s notable high tech success stories.
It’s a social network, but don’t expect members to “poke” one another. Their needs are not California cool or Atlanta hot. Instead the company is focused on the 300 processes that fabricate, mold, cast, extrude, forge, and stamp.
MFG.com is an online marketplace servicing the global manufacturing community. Its platform simplifies the complex process of sourcing and selling manufacturing services. The technology connects buyers with suppliers of manufacturing services while directing the collaboration, quoting, due diligence and analysis processes.
MFG.com consolidates the once-fragmented world of custom manufacturing into a more efficient marketplace, enabling products to be sourced and built more easily, quickly, inexpensively, and at higher quality levels.
An Early Inspiration
MFG.com’s founder and CEO Mitch Free began his career as a machinist on a factory floor. An early inspiration for MFG.com came from Lendingtree.com’s tagline ( “When banks compete, you win.”) Free recognized that this same philosophy could be applied to manufacturing.
With operations reaching internationally, Free is succeeding where past B2B marketplace sites and software developers (VerticalNet, PurchasePro, and FreeMarkets) failed. Many other so-called B2B companies rose and fell spectacularly during the dot com bubble meltdown.
This I know first hand. I bought VerticalNet on March 10, 2000 at its peak. The next trading day, the Nasdaq bubble began bursting many a retirement plan.
Today approximately 180,000 companies around the world have registered.
What is the secret of their success? Delivering value is one reason; Web 2.0 is another. Where Web 1.0 was static and about controlling the environment, Web 2.0 is dynamic and about engaging customers internationally to build a better online experience.
Mitch recognized the power of community to drive transactions. Search engines can’t do it. Nor can directories, which need user lists to work. With Web 2.0, content generates the circulation, and community creates efficiencies.
While the adoption curve may take longer with communities, the connections are stickier. With the MFG.com community, Free sees an opportunity for people to interact, collaborate, negotiate and leverage collective intelligence.
The process takes time. Manufacturing in general has been slower to embrace the Internet. And suppliers in particular are not accustomed to transparency. The shift in control puts prospects and customers in charge.
To help extend the power of the community, MFGX.com was created under AJ Sweatt’s direction. The goal is to facilitate discussion and let users voice their opinions. Unlike other companies, MFG.com is not concerned about negative comments. The community is self-policing, and Free would much rather be aware of what is being said than discourage negative feedback.
With MFGX.com, users create their own profile to network with peers, build their reputation, promote their company, find employment (or employees), and buy and sell things.
Why MFG.com
MFG.com is interesting on many fronts for me. One is its commitment to Atlanta.
Despite his company’s success, Mitch had considered heading to the west coast, particularly given Atlanta’s attitude toward web 2.0 and its adoption rate. He decided to stay recognizing that he would be trading one set of problems for another — finding developers and scarcity of resources for the West Coast’s hyper competitive environment.
MFG.com is embracing Web 2.0, a technology that runs counter to its industry’s prevailing culture, and its understanding of negative comments is unusual for many companies in general and Atlanta corporate culture in particular.
I am particularly interested in what MFG.com is looking to do in its next stage of development. In fact, it was through my conversation with Mitch Free and reading MoneyBall that I have begun to understand how data can be used to sell social media. Social networks generate immense amounts of data, which in turn can spur new services and transform companies. In other words, social media is not a cost center.
That’s what Free is doing. Buyers and suppliers are always looking for new information. Their transactions generate data. Free is mining that data and helping MFG.com create a new generation of services.
One service is predictive cost modeling. Based on data about parts ordered, MFG.com can help suppliers and buyers predict the cost of products with similar features and how much to charge.
While I know far less about drill bits than digital ones, I appreciate how MFG.com has embraced Web 2.0 and applied it to new areas. Its success is a valuable lesson for any company who questions the power of community to drive innovation.
Let me get back to you.
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