Bruce P. Mehlman
The Internet Innovation Alliance is a broad-based coalition of business and non-profit organizations that aim to ensure every American, regardless of race, income or geography, has access to the critical tool that is broadband Internet. The IIA seeks to promote public policies that support equal opportunity for universal broadband availability and adoption so that everyone, everywhere can seize the benefits of the Internet - from education to health care, employment to community building, civic engagement and beyond.
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Supply chain management increasingly uses broadband technologies to produce and distribute goods and services more efficiently, as well as to reduce inventories and their associated holding costs.
The latter has decreased the amount and size of storage facilities as well as transportation costs as more products are shipped directly to the store using just-in-time strategies. (p. 10)
In 2004, 93.3% of the value of shipments and sales from manufacturing and merchant wholesalers was conducted using B2B e-commerce… According to one study, high-speed services can aid businesses in saving $233 billion over six years. (p. 10)
Ernest & Young has estimated that bypassing warehouses could reduce inventory nationwide by $250 to $350 billion annually.
This reduction in inventories will decrease overstock and lead to less goods being held in intermediate or “staging” points, which will reduce pollution. (p. 11)
Between 1990 and 1998, Dell moved many of its operations to the Internet. Its sales increased 36 fold while its physical assets only quadrupled. (p. 10)
It is estimated that by 2007 B2C and B2B commerce (combined) will have avoided the need for 1.5 billion square feet of retail space and up to 1 billion square feet of warehouses.
Based on this estimate, the reduction in greenhouse emission will equal 17.3 million tons, including 12.7 million tons saved for retail and 4.6 million tons saved for warehouses. (p. 11)
The EIA estimates that 6.4 kWh are consumed for every square foot of warehouse space. (p. 9)
For every billion square feet of retail space saved, 8.49 million tons of greenhouse gases will not be emitted. (p. 9)
eCommerce “reduces retail and warehouse space requirements, which in turn reduces energy requirements to build, heat and cool retail and wholesale showroom and office space”…
2007 estimates claim that “B2C and B2B commerce (combined) could avoid the need for 1.5 billion square feet of retail space and up to 1 billion square feet of warehouses.” (p. 9)
44% of online adults purchased from other consumers online (C2C commerce). (p. 8)
77% of online consumers have purchased something over the Internet in the last 12 months. (p. 8)