Concerns over the security of financial transactions prevents 95%
of companies from joining an e-marketplace, according to a survey
of purchasing directors and managers released this week by ICL, the
e-business services company.
44% of respondents stated that the possibility of competitive
information getting into the wrong hands would also prevent them
joining. The survey showed that three quarters of companies not
using e-marketplaces are greatly concerned that they only focus on
price, rather than product quality or human relationships.
For the purposes of the survey, an e-marketplace is defined as a
browser-based electronic trading market where, amongst other
activities, goods and services can be bought and sold on-line from
a wide range of suppliers and partners. Market research firm
Gartner Group predicts that worldwide on-line trade will reach $7
trillion by 2004, with approximately 40% of transactions flowing
through e-marketplaces.
The ICL survey reports that 15% of companies have joined
e-marketplaces so far. However, these e-marketplace users are
reporting significant cost and time savings and a further 29% of
companies surveyed are currently considering joining an
e-marketplace. Nine out of ten users are benefiting from on-line
supplier lists and catalogues, 85% cited a reduction in order
processing time and 61% said they had reduced purchasing costs as a
result of joining an e-marketplace.
Another one in ten of the businesses surveyed is in the process
of developing a private marketplace with its suppliers and although
43% of companies have not yet considered joining a marketplace,
only 6% have made a definite decision not to do so. However, almost
three-quarters of non-users feel they would realise reduced
purchasing costs by joining. 69% feel that it would be easier to
find the products and services they need using a marketplace with
75% feeling they could even gain access to new markets.
