January 26, 2009 While many are still waiting to see the depth of current, perhaps unprecedented, economic upheaval, it’ll been interesting to see how much impetus this newfound economic climate has on change to the traditional supply chain. The internet will ultimately connect everyone with everyone, and hence with traditional intermediaries (wholesalers and retailers) currently curtailing the value-added services they offer, the climate might well add massive impetus to change in the way we buy goods and services. Two UK-based web sites thriving in the current climate are eGenie and stuff2send - one connects customers directly to tradespeople, while the other does the same for courier services. Viewed from another angle, eGenie is a job auction website and stuff2send is a lift sharing service for parcels and packages and both will result in lower costs to the consumer.

In economics, disintermediation is the removal of intermediaries in a supply chain: "cutting out the middleman". Instead of going through traditional distribution channels, which had some type of intermediate (such as a distributor, wholesaler, broker, or agent), the Internet now allows companies to partially or fully automate dealing with customers directly, reducing costs, and hence prices. The following articles discuss the customer perspective and sales perspective of disintermediation, and there's a great discussion at Information Week.

Disintermediation initiated by consumers is often the result of high market transparency, in that buyers are aware of supply prices direct from the manufacturer. Buyers bypass the middlemen in order to buy directly from the manufacturer and thereby pay less. Buyers can alternatively elect to purchase from wholesalers. Often, a B2C (business to consumer) company functions as the bridge between buyer and manufacturer.

Home improvement bidding website eGenie has reported an increase in the number of both tradesmen and consumers signing up for its services.

The site allows people to advertise for work they require, such as plumbing, electrical work, cleaning, repairs, painting, decorating or gardening, and the site has seen an increase in the number of specialists joining up to bid for jobs.

The eGenie service will also improve accountability as it acts not just as a price comparison website where customers can find the best deals in their area, it also allows its customers to rate, review and recommend service providers for other users. The website helps tradesmen promote their skills, work history and qualifications using a business profiling system eGenie’s Quality Index enables the comparison of a service provider’s skills, attributes and attitudes.

eGenie does not charge “employers”with charges to the Genies (service providers) ranging from free for the occasional job, through to a regular monthly charge for more visibility and regular work. The eGenie business model is also a logical next step for local newspapers wishing to digitise their current services to local consumers.

www.eGenie.co.uk was launched in 2008 and created by the people who developed the German internet portal blauarbeit.de which was established in 2004.

Stuff2send.com is a new web service that matches those driving to a destination in the UK with parcels and packages that need to be taken there. In a little over a month since launch, more than 500 professional drivers and private individuals have signed-up as ‘deliverers’.

TVs, Christmas presents and essential tea tree oils are among the packages that have already been taken to their destination, thanks to the simple model that allows professional drivers to make extra money and individuals to earn a contribution towards their motoring costs.

“For couriers in particular, opportunity knocks,” said site founder Colin Hay. “Stuff2Send allows them to bid for potential jobs hundreds of miles away that they otherwise simply wouldn’t hear about.”

“For individual motorists, it works a little like a lift-share service for parcels. By taking something from A to B drivers benefit from a contribution to those ever-soaring costs of motoring, like passengers paying for petrol in a car-share.”

Like any lift-share service, Stuff2Send helps use vehicle space to its full potential, cutting unnecessary journeys and reducing pollution. In the first six months, around 10,000 deliveries are expected, saving an estimated 25,000 tonnes of CO2.

Those sending parcels enjoy the convenience of a door-to-door service, by uploading details of the package and its destination onto the site. Unnecessary trips to the post office become a thing of the past and there’s no need for excessive packaging, as senders select a delivery service from bids that arrive in their inbox.

Anyone can register to deliver stuff, from private motorists to van or truck drivers. Registration costs GBP10 per annum for an unlimited number of online offers and GBP15 for an unlimited number of online and telephone offers. Once on-line, drivers search for potential jobs by location, making offers to take a sender’s stuff to its destination.

There are no charges for the sender other than the price from the deliverer they choose.

When all offers have been considered by a sender, he/she contacts their chosen delivery driver to agree collection times, payment and any other details. A straightforward rating system is included in the site, allowing others to see how well both the carrier and sender performed when the delivery has been completed.