Companies Turning To Web

Business Interruption Concerns Driving Buyers to Build Alternate Supply Networks

Thomas Register Industrial Purchasing Barometer Reveals Over 65 Percent Using Internet To Locate New Suppliers

Thomas Register, the world's most comprehensive information resource for supply-chain purchasing, today announced the results of its January Industrial Purchasing Barometer (IPB) Survey, which revealed that one-third (33%) of industrial buyers are looking at alternative suppliers as a result of supply-chain disruption concerns (i.e. potential war in Iraq and fears of terrorist attacks).

Additionally, more than one-third (34%) are increasing the number of suppliers as a result and 65 percent are using the Internet as the primary source for locating alternates. The January IPB Survey was conducted randomly among Thomas Register's pool of 700,000 opt-in online users. Respondents from the manufacturing and engineering industries, wholesale trade, distribution and government buyers participated in the survey.

According to the survey, the search for alternate/additional suppliers has had the following impact on buyers purchasing habits:

o Increased Number Of Suppliers..............34%

o Decreased Cost.....................................21%

o Buying More From Local Suppliers...........17%

o Changed Primary Supplier.....................8%

o Changed Secondary Supplier..................7%

o Increased Cost....................................6%

o No Impact...........................................5%

o Other ................................................2%

Respondents were also asked to identify their primary source for locating alternate/additional suppliers with the following results:

o Internet...............................................65%

o Trade Associations...............................13%

o Offline Buying Directories.......................9%

o Word of mouth....................................8%

o Other................................................5%

"The results indicate that the possibility of disruption has impacted the purchasing process as buyers create supply chain back-up," said Ruth Hurd, publisher of Thomas Register. "The search for alternate suppliers has opened their eyes to the power of the Internet."

Thomas Register has a long history of monitoring the psyche of industrial buyers. The monthly IPB Barometer was implemented to track the changing attitudes and behavior of the industrial purchasing community.

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