June 23, 1999
NOTE TO EDITORS
The latest edition of the New York Feds Current Issues in Economics and Finance, entitled Business-to-Business Electronic Commerce, is available for your review.
Economist John Wenninger reports that business-to-business electronic commerce -- the movement of information electronically between businesses over computer networks -- may give companies the added advantage they need to achieve measurable productivity gains.
By communicating quickly and accurately at all stages, companies can better manage inventories, keep close track of goods in transit, and provide superior customer service, says Wenninger.
Despite these advantages, the technical expertise needed to transfer data from stored files to computer networks and the high costs involved in this conversion have limited the use of business-to-business electronic commerce, according to Wenninger.
The Internet--by serving as a low-cost, universal network--could help eliminate these problems. Before the Internet can fully support business-to-business transactions, however, companies must overcome a different set of obstacles, including:
Contact: Douglas Tillett