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To: Sarmad Y. Hermiz who wrote (107780)	8/31/2000 11:25:50 PM
From: Lizzie Tudor	Respond to of 164684

I am trying to figure out potentially how much cost it can remove by adopting an internet strategy for linking with suppliers (which FMO has announced they are doing). Is this what supply chain management professionals work on ? Has this concept been used in the auto parts manufacturing industry. Yeah definitely but it sounds like they could be doing straight b2b, which is a piece of the supply chain puzzle where the purchasing catalog is listed on the web and orders get routed to the suppliers. As far as how much money is saved... well thats impossible to tell because it depends on how automated they were in the first place. Some manufacturers that put their products up on exchanges start getting tons more orders just because they avoid the tedious salesman/printed pricelist method that regionalized everybody. So in that case b2b doesn't really make you more efficient, but you get more orders. Or other companies already have automation and streamline the order process because orders come through the exchange vs. having to key them in with order entry staff... less personnel, etc. So see its completely variable depending on business. Commerce one built the company around automating the big autos including delco parts, so it has been done or at least is in process. But getting actual numbers about $$ saved or realized through automation... impossible