Electronic transaction platforms are already operating in most economic sectors as the most effective form of concluding contracts. However, they are of particular interest in the consumer goods market, where on one hand there are huge numbers of purchasing commercial enterprises (approx. 3 million in Europe), and on the other, producers of consumer goods from many sectors, most of which concern food products. The food industry is quite concentrated; there are several large international companies, national companies, or those providing local service. In Europe, the trade in food products is growing rapidly, and in the group of the 50 largest economic companies, the majority are retailers from this very industry. Retail trade is also a sector where e-business can have a huge impact on efficiency and cost reduction, due to: independence from store opening hours, frequent price changes, better inventory control, cheaper promotion for smaller companies, and the possibility of providing after-sales services.
E-business therefore influences management, logistics, and customer service; this, in the further future, may lead to major changes in the organization of vertical and functional cooperation. Electronic platforms, connecting all market participants, fulfill many functions, but the primary one is the purchasing function.
The article comes from the magazine “e-Fakty” 3/2005.