DISTRIBUTORS IN TRANSITION -- E-enabled Dealers

"As, we know, during the past year many of these Internet companies have collapsed, which has caused many dealers to hesitate," FitzPatrick explains. As a result, companies like GoPrinter.com—an ASP model that built dealer e-enabled Websites—have closed their doors due to lack of interest.

While initial promises failed to come to fruition, it does not negate the ultimate promise of e-commerce, claims FitzPatrick. "The necessity of e-commerce has actually increased, and that is driven by declining margins and sales, thus forcing the need to reduce costs. There is just no way to get around that. Every distributor and manufacturer in the next couple of years will have to put into place an electronic information and e-commerce program to take advantage of the inherent cost savings.