American Heritage Group - Click for home page


  AHG Overview

  Executive Search

  Professional Services:   Links:
Minority MBA, Fall 2001 Article (Pp. 43-45) - The Human Side of Business (John Holliday)




AHG Home: Professional Services: Internet Strategy: Internet Strategy continued

  Internet Strategy

News Item:
  A tug-of-war is shaping up between large companies that want even their smallest suppliers to become e-enabled and many midlevel and small suppliers that say they do not see the benefit of adding an additional layer of infrastructure to the supply-chain process. Is this you?

The battle is being fought one level removed from the ultimate customer and its major suppliers, pitting large suppliers and their production partners against each other. At the root of the push and shove is mounting pressure on suppliers to get connected to key electronic marketplaces and to have the smallest suppliers invest in even the most rudimentary electronic capability.

Companies that have already made certain investments are ahead of their competitors. That investment took the form of Technology/infrastructure and business process re-engineering. The companies that invested one to two years ago are seeing tangible results and ROIs on projects that are very attractive, even in this down economy."

Those in the supply chain that looked ahead are now able to influence those that are behind the curve, The other dynamic is that some of these companies that took the risk early are large and very influential in their market [and are] in turn driving adoption throughout the value chain to accelerate their savings and efficiencies.

A large food supplier, for example, a baked goods supplier to restaurants and institutions, is being pressured to join at least two and possibly three major food service industry exchanges. The entry fees and setup costs are a tough sell for a mid-market manufacturer.

What do you think about E-enablement, and Web-Exchanges. Have you positioned your company and its’ products. Get the answers! Take advantage of the current market conditions and position your company and its products, get with the curve.