It's Still Capitalism

New report shows linking to B2B exchanges high on list

REDWOOD CITY, Calif., Sep 13, 2000 (BUSINESS WIRE) -- Zona Research released its latest market report -- Virtual Logistics: Exchange Services And Fulfillment In Electronic Supply Chain Management (eSCM). As companies extend their business relations over the web, the Supply Chain area is emerging as a huge area for companies to both examine costs and reach potential new suppliers and customers. In this report, Zona analyzes current and intended deployment of eSCM solutions, the ROI companies are anticipating from these deployments, and the specific reasons companies are deploying eSCM solutions.

Significant findings within this report include:

  • 66% of companies stated that increasing customer satisfaction was the primary reason to implement eSCM
  • Only 15% of companies said that linking to B2B exchanges was a reason for implementing eSCM: the lowest reason given
  • 60% of companies said that recapturing their eSCM investment would take at least two years with 20% saying they would never recapture the investment

"Despite the media hoopla about the New Economy, enterprises are firmly focused on cost savings rather than linking to B2B exchanges as the primary reason for implementing Electronic Supply Chain Management solutions," states Jack Staff, Chief Economist, Zona Research. "It's back to good old capitalism: companies are concentrating on getting more value from their existing businesses rather than banking on as yet unrealized new markets even though those markets may be huge."

Virtual Logistics: Exchange Services and Fulfillment in Electronic Supply Chain Management (eSCM), is a 20-page Zona Market Report. It includes primary research based on interviews with 93 IT professionals with purchase authority or purchase influence for ecommerce technology deployments within their organizations. The research was conducted during August 2000, amongst organizations that employ 25 or more employees and have $1 million or more in annual revenues.