WORKING WITH A NET

LINDA PURPURA

Internet-based ventures focused on consumer marketing tend to attract the most attention, but the Net's value as a business communications vehicle has been quietly increasing. While electronic mail is the most widespread application so far, some companies are exploring whether the Internet can be used to, for example, cost-effectively keep tabs on product during its journey through the supply chain.

Others are questioning how the Internet fits in with existing communications vehicles such as electronic data interchange. Several wholesalers and retailers expect the Internet to play a crucial role in providing home-shopping services.

Here are what some key supply chain executives view as the top priorities in the areas of Internet applications:

Jay Zwart

VP, logistics

Topco Associates

Skokie, Ill.

I think the Internet will change the way we communicate with our members in a lot of ways. We've been fully linked on e-mail now for six months. In addition, we are sharing more data over the Internet, including much bigger files, and we are using the Internet as a tool to reduce deductions and discrepancies that we had [with members].

The Internet may also help us do a better job of integrating our lead times on products, taking into account exactly where the product is, when it is due and noting whether it arrived on time.

Mike Bargmann director, distribution

Wegmans Food Markets

Rochester, N.Y.

We're grappling with issues such as: Where do you go with electronic commerce? Where do you go with electronic data interchange? And how does EDI fit into the Internet? There are a number of other questions right now related to the Internet. I'm not sure how those questions will be resolved.

However, as a logistics manager, you just have to understand that the Internet will be part of the future. What role it will play is still evolving.

Mike Brown manager, retail systems

United Grocers

Portland, Ore.

The most important business aspect of the Internet will be for the marketing of home-shopping services. This is a good approach for independent retailers, because they can use the Internet to market home shopping cheaply. The costs [of Internet marketing] won't break you if the program doesn't take off right away.

I believe use of the Internet for these functions will continue to grow. Even if people don't get into it right now, they need to be prepared to jump in at a moment's notice. I'm talking about the Internet as well as intranets. People need to develop their own expertise on these in-house, or be prepared to quickly hire outside people to take care of it.

Jerry Oprea

VP, distribution Kessel Food Markets

Flint, Mich.

In the next six to 12 months, [the Internet] is strictly going to be to advertise, to indicate where store locations are, and to present what services you have to offer. Our company is not on the Internet yet, but we do intend to be.

As the Internet develops, home shopping will be applicable to the grocery business, but it's too soon right now to say that will happen in the next year.

John Sarno

VP, information systems

Big Y Supermarkets

Springfield, Mass.

The Internet allows much quicker exchange of information. The problem is that there's more information overall to choose from. Before I might have thought it beneficial to get my hands on information from three sources in the next month; [with the Internet] I have information from 40 sources within the hour. Having information readily available is a positive, but having too much too readily available is a problem.