26 April 2001 | Robin Parker
Lower prices for goods and services and process efficiencies will continue to fuel spending through e-marketplaces in the next two years, according to a study of US manufacturers.
The survey, by Forrester Research, found that 84 per cent of respondents saw lower prices as the main indicator of using e-marketplaces successfully. Most expected to make savings of 4 per cent on purchasing through e-marketplaces this year, a figure that was expected to double by 2003.
Manufacturers are realistic about implementation costs. Readying internal processes and connection were about 32 per cent of total e-procurement costs.
Forrester calculates the average Fortune 1000 company will spend a minimum of £3.92 million in preparing to join and then managing an e-marketplace. Preparing processes for e-marketplaces took at least £165,000, connection cost just over £1 million, and then managing its use cost a minimum of £2.7 million.
The survey covered 50 Fortune 1000 companies.