E-business in the European power generation equipment industry is undergoing a period of development as companies seek to leverage the internet to make their relationships with their supply chain and customers more efficient, according to a new study by international marketing consulting company, Frost & Sullivan.
The study suggests that those companies who fail to benefit from the cost-saving features of e-business tools will start to fade from the picture in the wake of accelerated consolidation.
Frost & Sullivan’s findings reveal that international multiple segment (IMS) OEMs and international turnkey contractors are in the vanguard of e-procurement adoption. This segment, amassing $600 million in combined online procurement and sales transactions in 2000, comprises OEMs operating on a global scale, providing a range of power generation equipment and services.
The value of these online procurement and sales transactions will rocket to $18.41 billion in 2007, said the study.