Sector could be on verge of big e-business shift

29 November 2001
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29 November 2001 | David Arminas

Only 37 per cent of suppliers have an e-business strategy, according to the Department of Trade and Industry.

But the industry could be on the verge of a major shift to online trading, it says in a report. Around 80 per cent of suppliers say they will have a strategy within two years, according to the study, launched at the Auto Conference Wales 2001.

For 20 per cent of companies connected to the Internet, a non-interactive website is the limit of their e-business capability. Online catalogues were used by 37 per cent of respondents while 31 per cent use the Internet for collaborative product development. Barely more than a quarter of online respodents - 27 per cent - used e-procurement.

Very few companies participated in online marketplaces. First-tier suppliers complain that car makers use them to cut supplier prices at the expense of long-standing relationships.

The study, carried out by Anisa Consulting, covered 150 suppliers in all tiers, as well as car manufacturers including MG Rover , Jaguar and Toyota.

SMnov2001

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