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News Release from: Cap Gemini Ernst and Young | Subject: E-commerce research report
Edited by the Manufacturingtalk Editorial
Team on 03 June 2002
UK manufacturing e-commerce adoption is
'patchy'
Winners and losers highlighted by a report, which suggests only large companies see any kind of a real return from the adoption of e-commerce.
Large manufacturers in the UK are using the internet to reduce costs in their supply chain and product distribution, with cost savings directly related to company size according to latest research commissioned by Cap Gemini Ernst and Young UK Over 20% of large firms using the internet for any aspect of their supply chain saw a decrease in their average purchasing price
This article was originally published on Manufacturingtalk on 16 Apr 2007 at 8.00am (UK)
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In comparison, only 9% of small firms were able to turn their investment in e-commerce into product cost savings.
The ability of larger manufacturing firms to make savings is translated in terms of anticipated e-commerce activity.
Almost two thirds (62%) of the UK's larger firms expect to use the internet when purchasing goods and services in the next 12 months.
Firms in the mechanical engineering sector reported the sharpest fall in prices, more than a quarter (28.2%) saw a decrease in average purchase prices after implementing e-commerce practises.
Only the textiles sector reported a net rise in average purchase prices after any implementation.
John Crampton, Vice-President of Cap Gemini Ernst and Young, "Our fourth study of e-commerce in manufacturing clearly shows that larger manufacturers are capable of taking advantage of the economies of scale the internet brings.
However, small firms show signs of moving away from early participation in e-commerce with the number of firms using the internet for purchasing falling".
Today, only one in three (35%) small manufacturers use e-commerce down from almost half (45%) in 2000.
Almost half of these firms (47%) cited a lack of demand from customers as the reason for this decline.
In comparison, a third of larger firms cited waiting for improved technology as their key impediment to e-commerce expansion, only 15% thought a lack of demand from customers were a problem.
The research is the fourth edition of the bi-annual survey of over 500 UK manufacturers carried out by Cap Gemini Ernst and Young and NTC research.
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