Fed Ex goes down electric avenues

Global transportation company Federal Express (Fed Ex) claims to have changed strategic direction with the integration of online ordering and shipping in an Internet-based service called Fed Ex Business Link.

The programme is the first offering in a virtual enterprise suite of services aimed at streamlining the firm's order management and information processes. Sources fear it could replace computer distribution and allow vendors to use a one-tier reseller model, with transport firms filling the gap.

Rob Dorpmans, UK country manager at Banyan, which recently sacked all but two of its European distributors, said: 'Warehousing needs are decreasing as things move towards electronic distribution.

But we are still very reseller intensive, and we need the resellers' knowledge of the technology.'

Laurie Tucker, senior VP of Fed Ex's logistics, electronic commerce and catalogue division, said: 'Any firm can become a global marketeer, and create new sales channels with the Business Link service, without the need to invest in additional customer service and warehousing.'

But Steve Lockie, marketing manager at networking distributor Data Translation Networking, dismissed the idea that the Fed Ex service could replace computer distributors. 'This is just a logistics company doing a logistics job with an Internet front end,' he said.

'There is no sales, no marketing, no training, no support and therefore no competition for value add distributors.'

Lockie admitted that it might be more of a problem for broadline distributors, but he maintained that logistics was only one part of a distributor's role.

Fed Ex began testing a prototype a year ago with computer supplier Insight Direct.