UK manufacturers are beginning to recognise how becoming ebusinesses means much more than just developing a website. Internet technology can also help encourage collaborative working between departments within the company and with customers and suppliers. A survey carried out by Benchmark and sponsored by business software solutions provider Sage shows that 40% of manufacturing companies believe that using Internet technology can improve communications between departments such as production, planning and procurement. 40% also believe that becoming an ebusiness will enable greater sharing of scheduling data and provide a more effective after-sales service.

Website penetration

The number of manufacturing companies with a website continues to increase steadily with 81% now online compared to 77% in 2000. Also more and more companies are using e-procurement (24%) as part of their normal business routine, speeding up the buying process and helping them to remain competitive.

More manufacturers (24%) are recognising the benefits of selling online with online catalogues or shopping carts being the most popular method (46%). 41% are also placing orders directly onto their ERP systems.

e-marketplaces

There has been a shift from the idea of e-marketplaces to ‘collaborative working’ with 66% believing this concept to be more important than the latter. Despite the hype surrounding e-marketplaces, manufacturers now appear to favour smaller, selective supply-chain specific private exchanges rather than more general sites. 63% believe online auctions do not allow customers to assess the quality and reliability of products.

Collaborative working

Almost half of all manufacturers believe that ebusiness will encourage internal and external collaboration. There has been a shift from seeing ebusiness as just a means of promoting the company. Companies also believe ebusiness benefits will include better internal communication (43%), customer collaboration (26%), supplier collaboration (20%) and more efficient procurement (15%).

Barriers to future ebusiness investment

Despite the good progress made, many manufacturers still face problems when considering investment. They include cost (50%), company culture (47%) and lack of in-house resources (45%).

Because of the current economic climate there are concerns over the return on investment of ebusiness solutions. Many companies also find it difficult to convince key customers and suppliers to co-operate.

Commenting on the research, Bill Hill, Sage’s business development manager for vertical markets says, “It’s very encouraging to see more and more manufacturers recognising the immediate and future benefits that implementing an ebusiness solution can bring to their business. They have realised that ebusiness is simply another way of conducting and improving your everyday business processes rather than a revolution. The research also highlights the need for collaboration from the outset when implementing an ebusiness strategy – between different departments, customers and suppliers. It is vital that there is buy-in from everyone involved if the implementation is to be successful.”

Benchmark conducted the survey among 1831 manufacturing companies with over 50 employees, between August and November 2001.

Notes to editors

Sage Vertical Market Development Manager, Bill Hill is available to comment further on this subject. Please call Suzy Goulding/Lindsey McKenna on 0191 255 3000 to arrange an interview date.

About Sage

Sage (UK) Ltd is a subsidiary of The Sage Group plc, a leading international supplier of business management solutions. Formed in 1981, the Group was floated on the stock exchange in 1989 and now employs over 5,000 people worldwide in its market leading companies throughout Europe and the USA

For more information contact:

Suzy Goulding/Lindsey McKenna
Sage Press Office
Tel: (0191) 255 3000
Email: suzy.goulding@sage.com/lindsey.mckenna@sage.com

Or alternatively, please go to the Sage website at www.uk.sage.com/ses