Saturday 22nd Jul 2017 - Logistics & Supply Chain

Online commerce disrupting industrial buying, says UPS

A new UPS survey has found that online commerce is disrupting industrial buying in Europe. According to the logistics company, with buying direct-from-manufacturer and e-marketplaces on the rise, the “industrial value chain in Europe is evolving and traditional distributors are under pressure to retain market share.”

The research found that more than 90 per of industrial buyers are buying directly from manufacturers, a 27 per cent increase over 2015 (when UPS last surveyed these buyers.

The UPS 2017 Industrial Buying Dynamics Study, is based on a polling of 800 purchasing professionals in France, Germany, Italy and the UK.

The research also found that direct-from-manufacturer sales now make up 44 per cent of customer spend in Europe.

“The story of industrial buying in 2017 is a story of disruption: direct and online models of commerce are supplanting old established buyer-distributor relationships,” said Kiel Harkness, marketing manager, UPS UK. “Whether it is buying direct-from-manufacturers or e-marketplaces, the traditional intermediary is under pressure everywhere – and online information and transaction capability are the great drivers of this change.”

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