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UK manufacturers cut spend on e-business

Antony Adshead
E-business spend by UK manufacturing companies has slowed, especially when compared with other countries, according to a survey published this week.

The results, released by Cap Gemini Ernst & Young and the Chartered Institute of Purchasing and Supply, found that the number of respondents buying direct goods such as raw materials and components had declined year-on-year from 25% to 23%. Only 3% made "significant use" of e-business for such procurement.

This compares with the US where 60% of firms source direct goods on the Internet, according to Forrester figures cited in the report.

The report indicated that UK manufacturing is focusing on core business and re-examining IT investments in difficult trading conditions.

While this may lower costs in the short term, it defies analyst opinion that IT investment can cut costs.

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