Leading Analyst Firm Finds 61 Percent Of Consumer Products Companies

GXS, a leading provider of business-to-business (B2B) e-commerce solutions, has posted the results of an AMR Research study focused on the penetration and use of B2B e-commerce among consumer products companies and their trading partners, and the benefits therein. Conclusions from the study indicate that 61 percent of consumer products companies increased revenue as a result of improved B2B initiatives.

The survey established strong agreement among respondents on the importance of B2B capabilities in growing relationships with key retailer accounts. According to the study:

•90 percent of average respondents cited that the strength of their B2B programme enables differentiation from their competitors; •95 percent of average respondents cited that the flexibility of their B2B programme is important to delivering a customised shopper experience; •93 percent of average respondents cited that the strength of their B2B programme is an important factor in getting more shelf space and new products on the shelf at key accounts; and •98 percent of average respondents cited that the flexibility of their B2B programme demonstrates to retailers the ease of doing business with them.

The AMR Research survey also found that by improving their B2B programmes, 67 percent of respondents experienced a reduction in costs; 61 percent reduced the costs to serve customers; and 59 percent improved cash-to-cash efficiency. Other findings addressed the proliferation and growth of B2B outsourcing among consumer products companies and the growing use of electronic B2B with small to mid-sized trading partners. For example, more than half of the companies surveyed plan to increase spending on B2B outsourcing initiatives by an average of 23 percent in 2008.

Lora Cecere of AMR Research said, “Often B2B initiatives are relegated to the IT department with a mantra of reducing costs. Based on this data, we feel that it is time for Line-of-Business managers to take more ownership of these programmes and take them more seriously in the building of demand networks that serve their key customers.”