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Jan 1, 2001 12:00 PM, MODERN BULK TRANSPORTER STAFF

DESPITE the glittering promise of electronic commerce via the Internet, one software executive believes physical logistics connections will nonetheless be the key to sustaining and growing the new digital economy.

At the inaugural meeting of the Global Electronic Trade Alliance (GETA), Gordon Forsyth, vice-president of marketing for New York-based ComPairData, said logistics has led to the demise of many business-to-consumer dotcom startups, and is one of the top concerns for companies exploring international business-to-business electronic commerce opportunities.

Washington DC-based GETA is a cooperative industry forum that seeks to discuss and address issues related to e-commerce international trade.

Forsyth, formerly a journalist who covered air freight and e-commerce issues for American Shipper, said successful e-commerce enterprises will be ones that develop solid logistics connections to deliver goods to both consumers and businesses.

"Logistics - and, in a broader sense, supply chain management - are taking on a more important role in new business plans being designed to reduce cost, improve marketing, and increase sales in global economy," he said.

Forsyth and ComPairData believe that e-commerce and the subsequent focus on refining logistics is part of a natural evolution in business being driven by the Internet.

"The number one driving force is the Internet and its power to deliver information," he said. "The Internet will continue to bring significant and irreversible change to the way consumers purchase goods, the way companies interact with their suppliers and - most importantly - the way companies work with logistics providers."

Forsyth added that, regardless of who wins and who loses in the digital economy, not only is the concept of electronic commerce here to stay, but also one of the most significant impacts will be the emergence of stronger, integrated supply chains.