In the aggregate, this prediction may well be directionally correct, but that doesn't by any means condemn all mills and service centers to failure. Indeed, the proper response now may be essential for success in the future. For the steel industry, the emergence of e-commerce is, in my view, an evolutionary process masquerading as a revolution. Specialty producers who didn't or couldn't react promptly or were serving niches with low barriers to entry were squashed. The Internet poses a similar challenge, only, in this case, one driven by the commoditization of information.
Information is power, as the old saying goes.
Whether explicitly acknowledged or not, it is a core element in the implementation of a company's strategy, perhaps even in the strategy itself. Consider the position of the niche or specialty producer. Its competitive advantage is derived from a sales organization that understands its customers' product and service needs, communicates them to the mill, and monitors the flow of orders through the system. Products, nomenclatures, packaging, and transportation procedures are customized. A myriad of systems, many off-line, are used to manage inventories, track quality, and schedule production.