Netherlands-headquartered multinational Philips Electronics is adopting a strategy to lift business-to-business sales via the internet from their present level of 5% to ten times that figure within two years. In the longer term, it expects the level to rise to 80%.

However, the target is not quite as ambitious as it seems at first sight – a hefty 40% of current sales are already made via electronic data interchange, which shortly will be switched to the internet.

According to a Philips spoke, the target will be achieved by increasing investment in internet activity over the next two years from €100 million to €150 million ($140.6m). The money will be directed at developing new approaches to e-commerce and intensive training for 40,000 of the company’s staff.

The strategic objective is not merely to cut costs: it also aims to keep customers better informed of product availability and delivery times. The scheme is largely modelled on sister company Philips Lighting, which already procures much of its materials and services electronically.

News source: Wall Street Journal