To: Sergio H who wrote (12444 ) 1/9/1999 9:01:00 AM From: lostmymoney Read Replies (3) | Respond to of 29382
A little on E-Commerce....... sergio, what do you think about GIGX? Examples of electronic commerce cost savings Web-based order management - Using a supplier's Web site, customers can place orders and view inventory availability and order and shipment status. Early implementers of Web-based order management applications report that the cost of processing orders can be reduced from $8 to $25 per order to the 3 cents to $1 range. Billing - Approximately five percent of U.S. households (5.16 million) will be viewing and paying their bills electronically by 2000. Estimating that each household pays 10-12 bills a month, between 619.2 and 743 million bills will be presented and paid electronically in 2000 alone. As customers move to online billing, billers can reduce bill printing, envelope stuffing, postage and remittance processing costs. However, most billers that are implementing electronic bill presentment and payment are doing so to enhance their relationships with their customers, not to reduce their costs. Customer service - Web-based customer service applications -- especially those that are high performance, easy-to-use and integrated with existing business systems, such as inventory and order fulfillment - will provide cost savings over time. In the first year of offering customer service online, companies should expect to see no savings or even an increase in costs because most companies will be running dual phone-based and Web-based customer service operations, and customer service representatives will take on technical support roles. In the second year of operation, many companies will break even on their investment as customers begin to move online from telephone-based customer service. In the third year, companies may realize 10-40 percent savings in customer service expenditures. ''While most Internet commerce ventures will not be profitable in the near term, embracing electronic commerce is imperative,'' said Rugullies. ''The relationship building and cost cutting achieved in the early stages of electronic commerce will result in an improved bottom line and may eventually increase revenue through customer retention and loyalty.''