beyond pt 0 23/1

Value could transfer within the sector as organisations find they have core
competencies, which are not part of the core business. They may leverage these
internal competencies by offering services to other industry players or other
industries generating a new revenue stream. One example of this type of
competency recognition, is the operation of BHP IT.
Interview: Rick Vosila, Unilever,
IRG member, 27 July 1999
E-commerce may facilitate the manufacturing industry performing other
business-to-business services traditionally performed by intermediators,
ultimately to achieve cost savings. An example of disintermediation below
discusses the opportunities for spare parts manufacturers to also distribute
their product.
The automotive industry may see changes in the channel for spare parts
distribution. These channels can be lengthy, with suppliers, a national warehouse,
regional warehouses and retail outlets. Disintermediation could occur as
e-commerce gives a better view down the supply channel, and enables the more
complex logistics for transportation. Parts may even be distributed direct from
the suppliers.
Additional Interview: Rob Panizzon, Ford Motor Company,
IRG member, 19 July 1999
However, also referring to the automotive industry, one stakeholder
raised the caution that disintermediation may not be possible in business
to customer relationships.
One issue preventing disintermediation in car manufacturing is the need for
trade-in valuations on the vehicle being replaced. This is not such a problem for
other product manufacturers. [Though ABOL noted that whitegoods
manufacturers are considering offering new services including old product removal
as part of the purchase process. Refer ABOL interview.]
Interview: Stephen Waldmeyer and Silvio Bonabello, Ford,
IRG member, 9 July 1999
11.5 External dimensions
The transfer of value to overseas organisations is not perceived as a major
threat to the Australian manufacturing industry, due largely to the
‘tyranny of distance’ which remains for physical product movements.
However, this should be evaluated closely by different industries within
the sector, and even for different products. Also, the immediacy of the
need for the product and cost of transportation should be considered.
While we may never order bread from France for delivery to Australian
homes, products with longer ‘shelf lives’ may be endangered by ease of
ordering and lack of immediacy of need (e.g. French wine) or forward
planning by the consumer (e.g. canned gourmet goods).
While it is recognised that the Internet removes boundaries transfers overseas are
not seen to be likely in considerable amounts. The physical product still has to be
delivered and there are costs associated with this. Consumers want cheap and
fresh products and these are likely to be locally manufactured, especially in the
products that Unilever supplies. Even in the ‘luxury’ products freshness is still
important, for example the time between grinding coffee beans and consumption.
Consumers may import products that are not available locally.
However, information services to consumers could be operated offshore.
Interview: Rick Vosila, Unilever,
IRG member, 27 July 1999
Just as e-commerce technologies endanger Australian manufacturers by
allowing Australian consumers to purchase quickly, easily and cheaply
from suppliers abroad, so to does the technology open the world’s
markets to Australian manufacturers. The level to which they take
advantage of this will depend, at least partially, on their decision to sell or
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