IDC Maps Out the eLogistics Opportunity for Service Providers

FRAMINGHAM, MASS., MARCH 13, 2000 — The accelerating engine of ecommerce is quickly going to hit a traffic jam unless products purchased over the Web can be delivered at "Internet speed." Recognizing the critical impact logistics services will have on the success of a cyber business, IDC has launched its new Business Services: eLogistics research program. IDC's research offers ebusiness-focused competitive analysis and strategic recommendations in the field of elogistics/efulfillment, providing Internet executives and service providers moving into this rapidly evolving space with timely advice on key opportunities and services trends.

Christmas 1999 and Valentine's Day 2000 will go down in history as two events that brought ecommerce logistics and procurement into the spotlight. Scores of new start-up ecommerce companies drew attention to their Web stores, URLs, and front ends, but only a fraction of the orders placed during these two holidays were fulfilled on time. It was evident to the world which companies had invested sufficiently in their back-end elogistics processes. With customers looking for reassurances that these e-mistakes of the past are indeed in the past, and with more manufacturers and "brick-and-mortar" outlets growing disillusioned with profit margins in the traditional retail channel, many elogistics/efulfillment providers are striving to fill this unmet demand for effective back-end outsourcing services.

"There is an exploding opportunity in both the business-to-consumer (B2C) and business-to-business (B2B) ecommerce logistics spaces. On the B2C side, you have players ramping up to provide one-stop-shop solutions automating processes from the 'buy' button to the doorstep, as well as niche players addressing individual logistics components including shipping, order processing, fulfillment, and return management," said Ting Piper, senior analyst for IDC's Business Services: eLogistics research. "Meanwhile, B2B ecommerce logistics is heating up as well. Here, the prospect of reducing costs and enhancing utilization in a collaborative, information-based environment is creating an elogistics opportunity that is about to explode."

IDC's Business Services: eLogistics research program provides strategic insights on the B2C and B2B logistics marketplace, including trends in outsourcing delivery, marketing opportunities, branding, messaging, bundling, and positioning of elogistics services. For more information, please contact Kara Murphy at 508-935-4136 or kmurphy@idc.com.

About IDC

IDC delivers dependable, relevant, and high-impact data and insight on information technology to help organizations make sound business and technology decisions. IDC forecasts worldwide IT markets and technology trends and analyzes IT products and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC is committed to providing global research with local content through more than 500 analysts in 43 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, and the financial community. Additional information can be found at http://www.idc.com.

IDC is a division of International Data Group, the world's leading IT media, research, and exposition company.

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