Operations

Dec. 21, 2004
2 min read

With e-commerce expected to top $3.2 trillion in sales in 2003 -- 40% from business-to-business trade alone -- few manufacturing company CEOs are ignoring the call of the Internet. In the most recent IndustryWeek CEO Survey, 76% of respondents cite e-commerce as a key manufacturing strategy. In fact, nearly half of surveyed CEOs say Internet-based commerce is one of their most important growth drivers. A premier example is Dell Computer Corp. During the first quarter of 1999, Dell's online sales averaged $18 million per day, accounting for 30% of the company's first-quarter revenues. Dell expects e-commerce to contribute half of its overall revenues this year. The fast pace of e-commerce is forcing a change in supply chains as well. Package-delivery companies are working at breakneck speeds to reshape themselves as masters of logistics, supply-chain management, and even warehousing. In fact, logistics and transportation companies spent 11% more than last year on technology to support e-commerce -- totaling upward of $700 million for United Parcel Service of America Inc. and $1 billion for the U.S. Postal Service. Carriers are becoming full-blown partners with e-businesses -- companies that depend on third parties to deliver product to customers. Leading Software Manufacturers Leading U.S. Long-Distance Providers World's Largest Steel Producers Top U.S. Power Marketers International Electricity Costs Top 25 Investor-Owned Electric Utility Companies Largest IT Companies Air Travel And Transport World's Best Hotels Largest Waste Management Firms Top 25 U.S. Motor Carriers Leading Third-Party Logistics Suppliers International Freight And Passenger Transport

About the Author

Sign up for IndustryWeek Newsletters
Get the latest news and updates.

Voice Your Opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!