Report: Use of Internet To Purchase Direct Materials Surpassed Indirect Materials

October 2003
Circuits Assembly;Oct2003, Vol. 14 Issue 10, p12
Trade Publication
U.S.-based organization Institute for Supply Management and Massachusetts-based Forrester Research Inc., have released the latest research report on e-business, which tracks online activity for manufacturing and non-manufacturing organizations. The report indicates that the percentage of direct materials purchased online surpassed the percentage of indirect materials purchased using the Internet for the first time since the fall of 2000 when the report was developed. Survey respondents spent an average of 11.7% of their total direct materials using the Internet in second quarter of 2003, up 1.7% from the first quarter. Indirect materials spending remained flat at 11.0%. The report analyzes three areas: the results of all organizations; the comparison of manufacturing and non-manufacturing organizations and the comparison of organizations that procure more than $100 million on materials per year with those that purchase less than that amount per year.


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