Internet potential

1 January 2002

'The UK leather tanning sector is strong in innovation but productivity and investment are relatively weak', says the report 'E-commerce Impact Study for the Leather Tanning Sector' commissioned by the UK Department of Trade and Industry (DTI). The report aims to overcome weaknesses in the government's objectives for the adoption and fuller exploitation of e-commerce. Raw materials costs are said to be the most important issue currently facing the leather tanning sector, and e-commerce is the least important. Few companies currently have a formal e-commerce strategy and fewer still use e-commerce for order processing and payment. The report highlights that pressure from customers, suppliers and employees has provided little motivation for using e-commerce, neither has competition nor technology. Few of the companies questioned by the DTI have formally evaluated the actual impact of e-commerce on their business and most firms have experienced little impact as a result of e-commerce.

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