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Will e-commerce help or hurt distributors and sales agents?

That’s still a question because readers were sharply divided on the effect e-commerce will have on packaging distributors or sales agents. Survey of purchasing readers in January reports wide range of opinions.

Few subjects revealed such a wide range of opinion as when Packaging World asked readers about the effect of Web-based purchasing on packaging distributors or sales agents.

The comments were solicited in a telemarketing survey of buyers of packaging conducted for PW by Frambach & Co. (Milford, NH) in January. Many of the survey results are reported in Net Sourcing, a supplement to PW that accompanies this April issue. The study is qualitative rather than statistical; it includes in-depth interviews with 50 purchasing executives from companies around the country.

The purchasing manager for a California juice producer sees Internet purchasing accelerating the consolidation of suppliers. “The giants will eat the little fish,” he said. “It will be more driven by price and Internet capabilities. Instead of using a local company, if the price is better out of [a company in] New York, you’ll order from New York.”

A buyer for a California winery sees it quite differently. “I don’t think it will affect our relationship with distributors at all,” she reported. “The Web sites will be used for order entry, but there will still be a need for discussions and conversations [about products] and to solve problems.”

This view of a limited use for Web sites is echoed by the purchasing manager for a Southwest food processor. “The distributors and agents will still come to see you,” he said. “The ordering process itself will just become more streamlined.”

Virtually those same words were used by the buyer at a Midwest pharmaceutical manufacturer. While he believes it will “streamline day-to-day operations,” he said it won’t eliminate the need for human interaction. “People will still need to talk about processes and materials,” he stated. Another respondent felt Web purchasing will have other benefits. “It sort of completes the loop by adding inventory tracking,” said a buyer for a Midwest chemical manufacturer. “Most distributors feel positive about it. I think Internet buying will firm up our relationship with our distributors,” he added.

Another purchasing executive’s opinion had a community perspective. “We have such a good relationship with our distributors that I’d hate to see that change,” said this purchasing manager for a Midwest soft drink bottler. “It’s in the company’s interest to work within our community.”

A buyer with a Southern bakery company represented the response of many in the survey. “It will be interesting,” he said. “It could mean you would never see a person. But I don’t think that will happen because face-to-face contact is important and both sides want the reassurance that brings.”

Others disagree

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