Recession to boost ecommerce according to KPMG

NEWS Ecommerce will be boosted, rather than hindered, by the slowdown in the European economy, according to KPMG Management Consulting. In a speech at the Alternative Business Solutions (ABS) seminar, Paul Baker, partner responsible for ecommerce at the consultancy, said that in leaner times, organisations necessarily focus on how they can reduce costs. He added that that can be done by eliminating inefficiencies in the supply chain using electronic commerce. Baker backed his claim with figures from KPMG's latest European-wide research, which surveyed marketing bosses at 500 companies across Europe. The survey revealed that 30 per cent of respondents already use ecommerce to transact with suppliers, with the figure expected to rise to 70 per cent within three years. Manufacturing, retail, wholesale and distribution sectors led the way, with almost half the respondents having begun to integrate ecommerce into their supply chain. Baker added that companies are becoming increasingly aware of ecommerce's capacity to generate cost savings without damaging customer service or operational efficiency.