With new sensors being launched all the time, it can be difficult for chemical companies to be sure that they have made the best choice for a particular application. However, as Sean Ottewell reports, a new internet service aims to keep engineers right up to date with the latest in industry developments.

Most engineers admit to being baffled at times by the huge array of sensor technology available today. Help is now at hand, however, with the launch of new vertical portal for anyone involved in the use and development of sensors. The portal has been set up by consultants Frost & Sullivan at http://sensors.frost.com and provides unlimited access to constantly-updated market news written exclusively by the company's worldwide team of sensor industry experts.
"The Industrial Sensors and Process Control groups of Frost & Sullivan are continually evolving and refining the deliverable content through strict market engineering methodologies, and Sensors.frost.com creates a venue whereby this information is easily brought to our professional client base," explained Michael T Berger, sensors team leader and industry analyst.
Sensors.frost.com registration is free, giving all users instant access to the team of sensor analysts which constantly monitors industry trends. A 'news by email' service delivers content on technology trends and market information covering the hottest issues in sensors.
Users are also able to sign up for a personalised client portal that allows them to interact directly with the analysts. Searches can be made for specific content, key industry events, or for analysis of new product ideas.
"We are very proud to have created sensors.frost.com as it truly brings together the global resources we have to offer to our clients," added Berger. "This includes contributions from our offices not only in the US but also from Europe, the Pacific Rim and South America which brings a total market package to the monitors of our clients' desktops."
A good idea of where the European sensor market is heading comes in a new report from Frost & Sullivan industry analyst Victoria Whitting. In "E-commerce changes the shape of distribution in European sensors markets, but will growth prevail?" Whitting argues that e-commerce presents a major challenge to all sensor manufacturers and distributors, as it opens up an exciting new distribution channel and presents significant potential for process improvements. "It will be vital for manufacturers and distributors to monitor closely the developments of e-commerce in this sector and adapt accordingly to increase or protect market share," she says.
Although e-commerce is still at the development phase, people's perceptions of the internet and the way it can be used to conduct business is constantly changing and the technology is rapidly progressing to enable swift improvements in the supply process to take place. There is a range of options for businesses, including commercial websites, intranets, extranets, e-marketplaces and trade exchanges. The internet is expected to be a major factor in determining future competitiveness, and this realisation is forcing more and more companies to sell their products on-line.
Levels of complexity for the products in the sensor markets can vary dramatically, from low-cost, commodity items, to highly advanced and technical transmitters. It is standard products that are expected to enjoy the first success while the more complex products will not suit the new distribution channel. Traditionalism in the sensors market is expected to breed reluctance to adopt this modern sales channel and, as a result, this market is not expected to fulfil its potential for some time. Concerns over security issues and a lack of familiarity towards purchasing via the internet will also deter new customers.
However, significant process improvements in the supply chain are expected following the emergence of the internet as an alternative sales channel. The potential cost and time saving advantages for both the customer and manufacturer are expected to encourage both to go on-line. The ability of the customer to quickly compare and contrast products, coupled with the prospect of next-day deliveries, will drive customers towards this new sales channel. From the manufacturer's viewpoint, the chances of achieving sales in minutes, or even seconds, holds huge advantages. Costs are expected to fall in all aspects of the internal process, including, advertising, marketing, procurement and ordering. This new cost-saving enterprise is being leapt upon in the industrial sector, where price wars are intense and profit margins tight.
Whitting says that the entire industry will be affected by e-commerce and, in particular, e-business, from sales and marketing through to delivery, affecting the entire supply chain process. The development of e-commerce and widespread use of the internet to buy and sell industrial products may ultimately threaten the survival of the small and local distributors, who will have to reconsider their role in the market place. These companies, she says, will be forced to rethink strategy and position in the marketplace as their current function as distributor becomes increasingly undervalued by the anticipated growth of e-Distributors. Smaller distributors must acknowledge this change and that their future value will not be in simply presenting a given product, but providing a full and effective solution to a customers manufacturing problem. The larger distributors with vast product offerings and the appropriate logistics solutions are more ideally placed to sell on-line.
E-commerce creates a new business model and can create problems achieving the necessary organisational and operational changes. Considerable investment, reorganisation and restructuring of companies is required to develop a comprehensive, long-term, e-commerce solution. Ensuring the appropriate logistics are in place to successfully achieve fast deliveries, and providing 24-hour customer support, all require a high degree of cost and organisation.
The large multinationals active in the sensors and instruments markets often have a broad network of different groups and companies working under the same umbrella, providing a vast range of different products. Therefore preparing for e-commerce has proved a timely and costly organisation process. Development of an e-commerce plan for the smaller and more specialised companies would represent a small cost compared with the significant cost and time saving benefits, coupled with the potential to reach new markets.

Customers demand lower prices

Customers are demanding discounts and price reductions for internet purchases. Customers expect manufacturers to pass on the lower costs of generating sales through the Internet. A number of manufacturers plan to offer discounts initially in order to entice customers to this new sales channel. This may set a dangerous precedent in the marketplace as the overall average price is lowered, and customers expect this lower price level to be maintained.
With security fears allayed, and as customers become more familiar with e-commerce, this new sales channel is expected to enjoy unprecedented growth. However, while some companies will enjoy growth following successful e-commerce initiatives the whole market is not expected to grow as a direct result of the Internet revolution. Ultimately, says the report, it is the larger and well-established companies, with well-devised websites, that are likely to benefit from the anticipated growth of e-commerce.