FOR RELEASE: January 1, 1998
|NAPM Media Relations|
|602/752-6276 ext. 3015|
(Tempe, Arizona) The National Association of Purchasing Management's (NAPM) January issue of Purchasing Today® takes an in-depth look at how electronic commerce has revolutionized business as we move closer to the next millenium.
The article, "We're Not There Yet!" reports that Internet-based purchases exploded in 1998, as researchers expected. International Data Corporation tallied $32 billion in business-to-business purchases on the Internet, with expectations of $331 billion by 2002.
Internet-based electronic commerce procurement is another story, especially when compared to Internet-based electronic commerce supplier-side software. In the article, Forrester Researcher reports that organizations purchased only $8 million (7 percent of the electronic commerce software market) worth of buy-side (Internet and extranet-based applications supporting purchasing processes) software in 1997. Supplier-side electronic commerce, on the other hand, accounted for 47 percent of the market, or $57 million.
"We're Not There Yet!" gives insight into where Internet-based electronic commerce procurement is now, and some keys to success in the future. "The Future of Purchasing and Supply: A Five- and Ten-Year Forecast," a joint research initiative of NAPM, the Center for Advanced Studies (CAPS), A.T. Kearney, Inc., Arizona State University, and Michigan State University, suggests that electronic commerce technology will support electronic efficiency efforts on behalf of purchasing and supply. Today, however, examples of successful buy-side electronic commerce systems are few and far between.
The article traces the success of Adaptec, a billion-dollar chipmaker which has taken the direct-material electronic purchasing plunge with silicon manufacturers, and whose growing Internet-based electronic system perhaps typifies the purchasing profession's collective electronic commerce goals via the Internet.
"We're Not There Yet!" also includes the results from an informal survey conducted on Electronic Commerce types of Internet use.
Purchasing Today® is NAPM's monthly publication and is a benefit exclusively for NAPM members. For information about receiving Purchasing Today® and becoming a member of NAPM, call NAPM customer service at 800/888-6276 or 602/752-6276 extension 401.
The National Association of Purchasing Management is a not-for-profit association that provides national and international leadership in purchasing and supply management research and education. The association exists to educate, develop, and advance the purchasing and supply management profession. NAPM provides members and non-members alike with opportunities to expand their professional knowledge and skills. NAPM is comprised of 180 affiliates with more than 44,000 members throughout the United States and Puerto Rico.