Internet Uses in the Inventory Tank Gauging and Process Level Measurement Markets

A recent market study from Venture Development Corporation (VDC) investigates usage of the Internet within the Inventory Tank Gauging (ITG) and process level measurement industries. ITG is the use of level measurement for inventory storage and custody transfer, rather than in process control applications.

Natick, Massachusetts (PRWEB) July 14, 2003 - A recent market study from Venture Development Corporation (VDC) investigates usage of the Internet within the Inventory Tank Gauging (ITG) and process level measurement industries. ITG is the use of level measurement for inventory storage and custody transfer, rather than in process control applications. Three uses of the Internet were investigated in a survey of purchasers:

- The Management of Commodities
- Use as a Data Source
- On-Line Buying

COMMODITY MANAGEMENT
Purchasers of inventory tank gauging systems were asked whether these are used for commodities they purchase and/or sell, and to what degree in these application use is made of the Internet or telemetry to track and manage inventory levels.

Below summarizes the findings relative to usage by their suppliers to track commodities.

Usage of Firms' Inventory Tank Gauging Systems by their Commodity Suppliers to Track and Manage Inventory Levels (Percent of User Respondents)

Share With and Without Applications
No Applications: 37%
Have Applications: 63%

Portion With Applications Who Have Suppliers That Track and Manage These Commodities Using the Internet or Telemetry
Suppliers Using Internet/Telemetry: 40%
Suppliers Not Using Internet/Telemetry: 60%

Sixty-three percent indicated usage for this purpose, and among these 40% indicated their suppliers use the Internet or telemetry to track and manage inventories.

Below summarizes the findings relative to their usage to track inventories of their customers.

Usage of Firms' Inventory Tank Gauging Systems to Track and Manage Customer Inventory Levels
(Percent of User Respondents)

Share With and Without Applications
No Applications: 62%
Have Applications: 38%

Portion With Applications Who Track and Manage These Commodities Using the Internet or Telemetry
Using Internet/Telemetry: 44%
Not Using Internet/Telemetry: 56%

Thirty-eight percent said they have such applications, and of these 44% indicated they use the Internet or telemetry to track and manage inventories of their customers.

In both cases, some respondents with no usage of the Internet or telemetry indicated this would likely be initiated in a year or two. Most, however, indicated they had no idea when such usage might be adopted. Some said they hope never for security reasons. Also, regarding monitoring of customer inventories this way - some saw this as a disadvantage, in that it reduces direct person-to-person contacts with customers.

The Internet As A Data Source
Below shows how use of the Internet has grown in popularity as a source of information on ITG and process level measurement products, and vendors of these. The declining share between 2000 and 2002 may be a temporary glitch, or an anomaly in the data. However, it could represent a peaking out in the utility of the Internet as a data source.

Usage made of the Internet to Gather Information on Inventory Tank Gauging Systems and Process Level Measurement Devices

In 2002: 53%
In 2000: 58%
In 1998: 28%
In 1995: nil

Most used are search engines to locate vendor web sites. Also used are on-site directories such as the Thomas Registry and on-line sites of trade periodicals.

ON-LINE BUYING
Although on-line purchasing is growing in popularity, it is not growing at a rate previously expected. VDC asked purchasers who were not buying over the Internet in 2000 whether they expected to be purchasing these products on-line within two years. About 27% indicated they did. In the current study they were asked if they expect to be making near-term purchases on-line, and only 7% replied that they do.

One factor in this slower pace is that vendors and distributors have not created on-line ordering web sites to the degree expected. Also, technical support is a principal vendor selection criterion among purchasers, and many view this as being best obtained in person-to-person dealings. The purchases also often involve services beyond hardware, and have to be handled on a contract basis. Spare part orders are more likely to be ordered on-line.

About VDC

Founded in 1971, VDC is a technology market research and consulting firm that specializes in industrial and commercial electronics, computing, communications, software and power systems markets.

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To view the entire press release go to:
http://www.vdc-corp.com/industrial/press/03/pr03-44.html

Report Availability:
http://www.vdc-corp.com/industrial/reports/03/br03-13.html

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For further information about "The US Process Level Measurement and Inventory Tank Gauging Industry, Eighth Edition" or any other VDC service contact:

Jim Taylor, Group Manager, jimt@vdc-corp.com

Marc Regberg, Vice President, msr@vdc-corp.com

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