Newton, Mass.— A report released jointly by Forrester Research, Inc. of Cambridge, Mass., and the National Assn. of Purchasing Management of Tempe, Ariz., shows mixed news for Internet purchasing growth during the quarter ended June 30, 2001.

The Report On eBusiness, a report tracking online activity for manufacturing and non-manufacturing sectors, showed buyers surveyed sent 9.8 percent of their direct material orders over the Internet in the quarter. However, the number of "large-volume-buying organizations" who collaborate with suppliers online dropped from 56 percent in the first quarter to 46 percent last quarter.

The number of firms buying indirect materials on the Web rose slightly, from 71 to 73 percent.

"Small volume" buyers increased their collaboration from 35 percent to 41 percent in the same quarter. Many buyers, however, realize that entering e-business is a complex process, and are waiting for an upturn in the economy before investing heavily in the systems necessary to do the job.

According to Bruce Temkin, Forrester group director, higher technology is both a detriment and an ally in the Internet purchasing realm.

"The Internet continues to expand as a buying channel but it's no panacea. Buyers realize that e-procurement takes more than surfing on supplier Web sites," he said. "That's why we're seeing a growing number of organizations changing their procurement practices — and running into the difficulties of integrating their purchasing systems."

Just as significantly, according to survey data, while the Internet is an important part of purchasing plans of 84 percent of respondents, integration of digital systems remains slow, and over 47 percent of firms say they are in the "earliest stage" of adopting Internet buying.

The report is based on data received from supply management executives at over 700 organizations belonging to NAPM's Business Survey Committees.