Fragmented Sales Channels Present An Opportunity For Fresh-Food Marketplaces
- Tags:
- CMP Media,
- Food Industry,
- Industry,
- Management,
- Strategy
- Source:
- CMP Media
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Overview: A new wave of business-to-business Web marketplaces is trying to put the wholesale perishable-foods industry on a much-needed diet. In a fragmented industry heavily dependent on person-to-person selling by phone and fax, the sites offer the potential of cutting transaction costs from supply chains for everything from beef and chicken to seafood and produce. The sites' approach to the market varies greatly: Some of them use an open auction format, while others provide areas where members can negotiate deals privately via E-mail. However, the biggest barrier to the adoption of these sites seems to be more human than technological. The food industry is layered with small businesses such as producers, brokers, and wholesalers that are wedded to personal relationships and are not technology-savvy.
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Format: HTML | Date: Oct 2000 | Pages: 3
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