El Segundo, CA September 26, 2001 Companies across the globe are leaving billions of dollars on the table by neglecting to enable new e-business models and improve operational efficiencies, according to a new book co-authored by a trio of e-biz industry watchers.
Commissioned by the Council of Logistics Management (CLM), the book, e-Business: The Strategic Impact on Supply Chain and Logistics, addresses the impact of e-business on supply chain and logistics business operating models.
The authors Michael Bauer and Chuck Poirier of Computer Sciences Corporation (CSC) and Dr. Larry Lapide of AMR Research conclude that even in an economic downturn, companies must incorporate the Internet to achieve immediate savings and remain competitive.
Executives need to prepare their organizations for economic recovery by creating new operating models that serve current as well as prospective customers, the authors assert.
"Survival now means prosperity tomorrow," said Bauer, a partner in CSC's North American automotive practice. "Executives need to think carefully about making the right strategic moves now to position their companies for competitive advantage in the future. They will need a proven methodology and a practical roadmap to use the Internet for the improvement of business processes and the creation of new business models."
The book, based in part on interviews with various e-business and supply chain experts, supports the view that the benefits of e-business will cover more than supply chain and logistics. This view holds that the benefits can be realized across the board, from customer self-service to complicated B2B networks. For example, AMR has reported that Bristol-Meyers Squibb estimated its savings in procurement to be $100 million in 2000, while elsewhere Janus, the mutual fund giant, reportedly was able to reduce its call center staff by 465 people, largely due to its customers accessing account information via the Janus Web site.
"Like all new technologies that have preceded it, the Internet is another tool for businesses to compete with," said Lapide, vice president and general manager for benchmarking services at AMR. "Our research shows that leading so-called Old Economy companies have recognized this and have started to leverage it to their advantage with strategies that start small and build from there. Our key conclusion is that e-business can be beneficially leveraged by companies of all shapes and sizes in a supply chain, not just by the channel or network masters."
The book is available through CLM's Web site.