TechnologyManufacturers lack ebusiness planning

Manufacturers lack ebusiness planning

Fewer than 20% of UK manufacturers have a formal ebusiness strategy and 37% only carry out e-transactions on an ad hoc basis, according to a survey of 18,000 UK companies by Deloitte & Touche.

‘Collaborative product commerce that enables end-to-end ebusiness is the next growth area in the manufacturing arena. Companies can improve the supply chain and make huge savings,’ said Guy Washer, managing director of Benchmark Research, which conducted the Microsoft sponsored study.

The benefits of the technology will include improved internal communications, and improved customer and supplier collaboration leading to more efficient procurement and fulfilment.

Benchmark Research cited the major benefits of customer collaboration as the greater sharing of scheduling data and more effective after sales services.

It also said that the advantages of collaboration with suppliers include the reduction of order transaction costs and the visibility of stock levels.

Research from Deloitte Touche found that CPC can generate cost savings of up to 70%.

‘Most manufactures are involved with the design of products but, if they are linked via collaboration software to their sales and marketing departments and they talk to each other, costs can be cut by up to 70%,’ said Paul Burgam, manufacturing industry manager at Microsoft.

But cost, lack of in-house skills, security, a lack of standards and the ability to qualify the benefits, were cited by respondents as significant barriers for future ebusiness investment.

The research showed that, as a result of these barriers, 76% of companies have no plans to join the e-trading community.

According to Washer, the current slowdown in IT spending has meant that directors and finance departments are having an increasing influence on ebusiness strategies. As a result a measurable return on investment is essential if these systems are to be taken up.

This change at the decision making level could prove problematic as 77% of the study’s respondents currently using an e-marketplace said they could not show a return on investment.

Links

AccountancyAge’com’s e-business page

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