BtoB

Study: Strained manufacturer-distributor relationship may slow b-to-b

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Philadelphia--Manufacturers and distributors have significantly different viewpoints on the impact of e-business on their channel relationships, and this may impede b-to-b development, according to a new report by Pembroke Consulting. Fifty-six percent of manufacturers surveyed said they expect online exchanges to generate loyal customers by 2006. Sixty percent of distributors, meanwhile, doubt that online exchanges will attract customers. Sixty-seven percent of manufacturers surveyed for the study, "Forces of Change: Future Scenarios for Wholesale Distribution," said distributors will stock less inventory and rely on other supply chain partners to drop-ship to customers by 2006. Only 47% of distributors said they expect to outsource logistics by 2006. "Manufacturers and distributors are at odds about the impact of e-business on their channel relationships," said Adam J. Fein, Pembroke's president, in a statement. "This will slow the adoption of e-business solutions because both groups are approaching technology investments with divergent perspectives."
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