Commission survey says ICT leading a business-to-business 'revolution'
A new European Commission survey on the impact of information and communication technologies (ICTs) on the logistics of European business, published on 23 January, has revealed that new technologies are creating a 'revolution' in business-to-business (B2B) relations. The survey, based on replies from 180 companies between February and September 2001, cites lower stocks, faster delivery times, changing job profiles and a shift from business competition to cooperation as some of the effects of ICTs on B2B relations. The survey showed that larger companies tend to use ICTs to master complex networks and telematics systems, while smaller enterprises sometimes lack the financial resources to use these technologies for logistics but can easily make use of smaller, more flexible applications. According to the Commission, the survey demonstrates that ICTs are contributing to innovative ways of doing business, such as 'production on demand,' or 'just-in-time,' processes linking manufacturers and their partners along the supply chain. ICT is also impacting on business-to-consumer (B2C) transactions, increasing the flow of supply and demand and developing business collaboration. In addition, ICTs are having a significant impact on the environment in which businesses operate. New posts and functions are appearing, such as 'infomediaries,' who provide virtual links in the delivery chain, and suppliers of logistics solutions. The survey also highlights that while the overall impact on employment is low, 'there is an urgent need for training' to deal with changing job roles. Advances in ICT technology are also leading to a shift in business ethos and 'the emergence of a new dimension in relations between competing businesses: competition stops where cooperation becomes more profitable.'