Huge cost savings if electronic standard accepted

By RICHARD BRADDELL

WELLINGTON - New Zealand manufacturers and suppliers are being encouraged to join standardised electronic business procedures to help them in the Australian market.

Dave Botherway, a member of the Australian Retailers Association's electronic commerce committee and coordinator of electronic commerce for retail giant Coles Myer, said business-to-business e-commerce was probably going to be worth 10 times the business-to-consumer part of electronic commerce, and the standardisation of processes could bring huge savings.

Attending the Wellington launch of the Electronic Business Association (Ebanz), Mr Botherway said that while the internet had captured the imagination in the burgeoning e-business market, electronic data interchange was still by far the most important.

Nevertheless, the internet was the key entry point into business-to-business contact for small and medium-sized companies.

A key element in standardisation and cost reduction was the barcoding of goods at the point of production so their progress could be tracked accurately from transportation though to the retail sector.

The process had become standard with United States retailers about seven years ago, and in Australia three years ago, and it was hoped it would be followed by New Zealand manufacturers supplying the Australian market.

Work had been done with Farmers and Progressive Enterprises, and discussions held with The Warehouse to bring them into a standardised e-business regime, Mr Botherway said.

Ebanz operates under the umbrella of the Telecommunications Users' Association of New Zealand.