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Q4 2001 Sees Increase In Online Purchasing - Why?

Story:

According to a study by the Institute for Supply Management (ISM) and Forrester Research, the number of large-volume-buying organizations that reported cost savings from using the Internet grew from 28 percent in the third quarter of 2001 to 45 percent for the fourth quarter.

Companies responding to the survey reported purchasing 9.5% of their indirect materials over the internet in Q4 - an increase from 7.1% the previous quarter.

Analysis:

Organizations have increased their participation in online marketplaces; what is your strategy? More than 25% of the respondents in the survey reported buying goods or services in online marketplaces. Manufacturers increased their use of online auctions from 21% in Q3 to 29% in Q4.

Link:

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