Gan €.Gomllrerce really bring value to the building materaals industry?

Th" In,"rnet has enabled a new business paradigm called electronic commerce. Commonly referred to as e-commerce, e-business or business-to-business, these electronic methods of doing business are projected by various prognosticators to handle between $6 and $8 trillion annually by 2004.

Within e-commerce discussions, you've no doubt heard a lot of hype about how the Internet is going to change the way you do business. Well, let's get one thing straight: the Internet is not a change agent, it is only a delivery mechanism. It is the software running through the Internet that really determines how effective the Internet will be in optimizing business processes.

By Thomas J. Westbrook President and c.e.o. World Wide Wood Network. Ltd.

very basic form, an exchange may be no more than a "match maker" or "dating service." In the most useful form, the exchange will offer deep enterprise-to-enterprise systems integration between existing trading partners, as well as providing useful tools for supply chain integration and management.

The role of its Internet initiatives. according to Matthew Deeter, v.p. of Lowe's Internet Business Group, is "to design systems to help customers understand Lowe's value proposition." The objectives are three-fold:

(l) Expand relationships with existing customers.

(2) Establish relationships with potential customers.

(3) Provide a channel for research and sale of products and services.

Lowe's has received good results from its testing of in-store appliance kiosks in the Raleigh, N.C., and Indianapolis, In., markets, according to Deeter. "It's led to a lot of interaction between our associates and customers. We end up with better informed customers who are more apt to buy."

In Deeter's opinion, the best direct sales opportunities on the Internet involve replenishable supplies to property and plant management workers, repair products for specialty contractors, and big-ticket, stand-alone purchases by consumers and commercial customers. He noted that Lowes.com users buy l30Vo more annually than the average Lowe's shopper, visit the store I OOVa morc frequently, and have a 23Vo higher averase ticket.

While e-business is limited to how an organization or enterprise integrates its internal business processes with the digital world, ecommerce encompasses the much broader scope of electronically integrating supply and value chain practices between other enterprises (E2E) or business (B28).

So, what is the promise of the Internet in the business environment? Some people say it amounts to three key benefits:

(l) The Internet helps businesses run more efficiently.

(2) The Internet collapses time and space. allowing businesses to eliminate geographic and time barriers.

(3) The Internet can dramatically improve the way businesses attract, track, serve and retain customers.

Again, the Internet does not do this just by its existence. It is essential to have access to useful solutions that help leverage the promise of the Internet. A properly structured third party exchange can be a good business partner to deliver the right e-commerce solutions.

Sometimes called an e-marketplace, net market or vertical hub, a third party exchange is an outgrowth of B2B e-commerce. As the name implies, a third party exchange is a neutral and independent forum that is not owned by any of the market participants. Its primary purpose is to connect buyers and sellers electronicallv. In the

The models for exchanges vary greatly. Potential participants should understand what a particular exchange may or may not provide before joining. Matching the business needs of an enterprise with the tools offered by the exchange is critical. An enterprise should not have to change the way it does business to use the services of an exchange. A properly modeled third party exchange will have solutions available that enable the existing business process of an enterprise to be optimized through application of those solutions.

The concept of an exchange is nothing new to business. The trading exchange format has existed in the physical world since the beginning of e-commerce. For thousands of years, man first brought his wares to sell at a centralized public market, where buyers came in search of products and negotiated prices. Over time, the advent of new communication devices and delivery mechanisms allowed commerce to decentralize. As the telegraph, telephone, telex and fax were introduced and embraced, commerce began to spread over larger geographic distances. Then the train, automobile and airplane began to move products between those locations at commercially affordable rates and times. These advances evolved gradually to how we have conducted commerce for the last 100 or so years.

An electronic exchange is just another market channel. Beyond connecting buyers and sellers, a well positioned third party exchange will offer supply chain fulfillment tools, as well.

Rrrrlrrns

Breedlove Lumber Co., Charleston, Ms., has been acquired by Rusty and Marvin Mims from Janet Breedlove, who has retired after 65 years; the new owners are retaining the company name

Jones Hardware & Lumber, Jones, Ok., has been opened on the site of Economy Lumber Co. by Mike Evans, who purchased Economy's inventory

Carolina H oldings, Raleigh, N.C., has acquired Fagen's Building Centers in Panama City and Hudson (Tampa), Fl., to operate as Stock Building Supply units; the additions bring Carolina Holdings to 6 units in Florida and 225 tolal in 24 states ...

Hoke Lumber Co. (Oklahoma Home Center), Stillwater, Ok., has been acquired by Bill Van Sant from Ed and John Stuart

Leeds Building Products, Kennesaw, Ga., agreed to buy the assets of San Antonio Lumber, San Antonio, Fl.; 19-unit Leeds plans to move its Zephyrhills, F1., yard to the new location

Puryear Lumber Co., Senatobia, Ms., has expanded its rental center to 22,000 sq. ft. ...

Smith & Sons Building Center, Anadarko, Ok., built a 5,000-sq. ft. store adjacent to its former 1,500sq. ft. location

King Lumber Co., Bassfield, Ms., is operating from temporary quarters while it rebuilds after a May 18 fire ...

Elk Supply Co., Clinton, Ok., is converting 13 of its 14 yards from True Value to Ace Hardware affll,iation, including Beaver Lumben Clinton Lumbet Cordell Lumber EIk City Lumber Leedey Lumber Sayre Lumber, Thomas Lumber, Weatherford Lumber Woodw ard

Lumber, Carnegie Lumber, Mangum Lumber Hooker Lumber and JB Lumber; Frederick Lumber Co. remains withTruSen

Home Depot agreed to lease 100,000 sq. ft. in east Tampa, Fl., for a new regional call center; the office is expected to handle about 100,000 calls a day for stores throughout Florida and south Alabama...

Lowe's Cos. opens new stores late this month in Decatur, AI. (Michael Boshell, store mgr.); Athens, Tn. (Doug Bell, mgr.); Hampton, Va. (David Taylor, mgr.); Port Arthur, Tx. (Sandy Bennett, mgr.); E. Houston, Tx. (Jeff James and Peter Reed, mgrs.); NW Central San Antonio. Tx. (Leo Martinez, mgr.), and Pinellas Park, Fl. (Marty Nichols, mgr.) ...

Lowe's expects to complete construction in Columbus, Ms., by late Oct.; got the go-ahead to build in Smyrna, Ga., for a spring 2002 opening; begins construction this month in White Settlement (Fort Worth), Tx.; is building replacement stores in Albemarle and Rockingham, N.C.; will co-anchor a redeveloped University Mall in Pembroke Pines, F1., and applied to build its 3rd Jacksonville, Fl., location on 17.8 acres at I-10 and LennoxAve....

Frank's Nursery & Crafts is shuttering units in Hampton, Newport News, Norfolk and Yorktown. Va.

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Texas Wholesale Building Ma' terials moved into a new comPlex in Farmers Branch, Tx., occupying 239,W0 sq. ft. of warehouse space and 20,000 sq. ft. of offices ...

Aiken Exporting, Spanish Fort, Al., has been opened by Lane Merchant, ex-Woodland Timber; former partner John Braun has relocated to Arizona ...

Willamette Indastries' new Carolina Particleboard plant in Bennettsville. S.C.. is on schedule to open next month ...

Bradco Supply Corp. plans to relocate its 25,000-sq. ft. Charlotte, N.C., DC to a 45,000-sq. ft. facility by year's end

Peachtree Cos., Norcross, Ga., is the now corporate identity for Peachtree Doors & Windows, Crestline Windows and Vetter Windows & Doors after the three sister companies recently merged their senior management teams

Ace Hardware Corp. provided Ace Royal Paint for The Southern Living Idea Home in WinstonSalem. N.C. ...

P recision Architectural Products, Inc., Largo, Fl., has added a Shaker style LDF stile and rail door to its Villacrest line ...

Builder Marts of America, Greenville, S.C., is partnering with Sawbucks payment exchange

Anniversaries: Hansgrohe, Alpharetta, Ga., 100th Witten Lumber Co., Inc., Gastonia, N.C., 75rh ...

Housing starts in June (latest figs.) fell 3Vo to a seasonallY adjusted annual rate of 1.568 million single-familY starts climbed LVo to 1.286 million; multi-family was at a rate of 297,W for 5+ units.