Lindsey Partos11.01.01
Whether we like it or not, electronically transacted commerce, better known as e-commerce, is here to stay. All industries are touched by this new technology brought to the work place with the advent of the Internet. In the U.S. the Census Bureau of the Department of Commerce estimates that the first quarter of 2001 saw e-commerce sales hit $6.994 billion, an increase of 33.5% from the same period last year.
But the initial excitement in the 1990s surrounding e-commerce-boosted by a massive financial input from zealous venture capitalists, dollar heavy banks and rich entrepreneurs-has since died down considerably. When Nasdaq, the world's first electronic stock market, recently saw shares tumbling and organizations witnessed their bank balances plunge, the balloon burst. Recent terrorist events in the U.S. will no doubt also take their toll.
The food industry has not escaped unscathed. In July of this year Europe witnessed the closure of IngredientsNet. com. Launched in 2000 and backed by food companies Fyffes and Glanbia, this e-procurement solution provider, specific to the food ingredients industry, ended operations through a lack of funding. Were they too early? Arguably yes. Was the market ready for them? Probably not.
The question is then, is there a place for e-commerce in the food industry? Irrespective of the above words, the answer would have to be a resounding yes. Although for many small and medium-sized companies, the advantages (reduced supplier prices, easy repeat orders) appear less convincing than the disadvantages (expense, IT know-how, fear of the unknown), e-commerce, when used effectively, is a powerful tool that can help, not hinder, a company.
When asked about e-commerce activities, Rob Pappot, corporate communications manager for flavor specialist Quest International, Bussum, Holland, commented, "Yes, we are involved and have taken the first steps in this direction." This is not due to external pressure, said Mr. Pappot. "We have started using Extranet with some of our customers because it makes life more efficient, particularly for repeat orders."
But echoes from food ingredients companies, particularly in Europe, reveal a distinct reticence to enter into e-commerce activities. Many suggest that pressure from clients has been the leading motivation for participation on platforms. Or to put it another way, they are there because they have to be, not because they necessarily want to be. Others can afford to be more cautious and bide their time, watching and waiting to see the evolution of e-commerce. "We have done a few tests but we are not anxious in the short term to enter into e-commerce platforms," said Lex Van Moorsel, who handles sales and marketing for dairy ingredient company DMV International, Veghel, The Netherlands.
For those companies interested in taking the first steps towards e-commerce activities, we have compiled a list of platforms pertinent to the food industry (Table 1). As we went to press, all sites were trading; however, the Internet is a highly volatile and ungrateful world and some sites quoted will no doubt become victims.NW
About the Author:
Lindsey Partos is editor of FoodNavigator.com (http://www.foodnavigator.com), a leading European portal for the food ingredients industry. He can be reached at 33-4-99-52-28-70; Fax: 33-4-99-52-28-75; E-mail: lindsey.partos@foodnavigator.com.
But the initial excitement in the 1990s surrounding e-commerce-boosted by a massive financial input from zealous venture capitalists, dollar heavy banks and rich entrepreneurs-has since died down considerably. When Nasdaq, the world's first electronic stock market, recently saw shares tumbling and organizations witnessed their bank balances plunge, the balloon burst. Recent terrorist events in the U.S. will no doubt also take their toll.
The food industry has not escaped unscathed. In July of this year Europe witnessed the closure of IngredientsNet. com. Launched in 2000 and backed by food companies Fyffes and Glanbia, this e-procurement solution provider, specific to the food ingredients industry, ended operations through a lack of funding. Were they too early? Arguably yes. Was the market ready for them? Probably not.
The question is then, is there a place for e-commerce in the food industry? Irrespective of the above words, the answer would have to be a resounding yes. Although for many small and medium-sized companies, the advantages (reduced supplier prices, easy repeat orders) appear less convincing than the disadvantages (expense, IT know-how, fear of the unknown), e-commerce, when used effectively, is a powerful tool that can help, not hinder, a company.
When asked about e-commerce activities, Rob Pappot, corporate communications manager for flavor specialist Quest International, Bussum, Holland, commented, "Yes, we are involved and have taken the first steps in this direction." This is not due to external pressure, said Mr. Pappot. "We have started using Extranet with some of our customers because it makes life more efficient, particularly for repeat orders."
But echoes from food ingredients companies, particularly in Europe, reveal a distinct reticence to enter into e-commerce activities. Many suggest that pressure from clients has been the leading motivation for participation on platforms. Or to put it another way, they are there because they have to be, not because they necessarily want to be. Others can afford to be more cautious and bide their time, watching and waiting to see the evolution of e-commerce. "We have done a few tests but we are not anxious in the short term to enter into e-commerce platforms," said Lex Van Moorsel, who handles sales and marketing for dairy ingredient company DMV International, Veghel, The Netherlands.
For those companies interested in taking the first steps towards e-commerce activities, we have compiled a list of platforms pertinent to the food industry (Table 1). As we went to press, all sites were trading; however, the Internet is a highly volatile and ungrateful world and some sites quoted will no doubt become victims.NW
About the Author:
Lindsey Partos is editor of FoodNavigator.com (http://www.foodnavigator.com), a leading European portal for the food ingredients industry. He can be reached at 33-4-99-52-28-70; Fax: 33-4-99-52-28-75; E-mail: lindsey.partos@foodnavigator.com.
