Investment in e-commerce will rise, rather than be held back, by a slowing economy. According to Paul Baker, e-commerce partner at KPMG Management Consulting, businesses looking to reduce costs will turn to the Web as a way of making the supply chain more efficient.
?The traditional thinking is that businesses retrench and cut back on investment when there is a downturn in the economy," said Baker at the Alternative Business Solutions seminar in Oxford this week. ?However, this will not be the case on this occasion because businesses are beginning to recognise that, by streamlining the supply chain, they can achieve cost savings that will help them survive the slowdown.?
In recent research conducted by KPMG, the company found that nearly one-third of respondents currently use e-commerce for transactions with suppliers and predicted that the figure will rise to 70 per cent in three years.
Manufacturing and retail, wholesale and distribution were the sectors most ready to adopt e-commerce as nearly half had already taken steps to integrate e-commerce into their supply chain.
?Companies are taking a more sophisticated approach to coping with economic downturns than previously. Organisations now realise that cost savings can be generated without damaging their ability to provide excellent customer service or their operational effectiveness,? added Baker.
In times of economic downturn or uncertainty, a company that automates manual processes will be more able to fulfil orders quickly. This will achieve customer loyalty, as well as helping to reduce storage and warehousing costs.
?While many companies are excited by the prospect of making ?to-consumer? sales using electronic commerce, some of the more successful players have realised that the business-to-business aspects of e-commerce are the place to start,? said Baker.
Source: VNU Newswire
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