In fact, with our newly formed UPS Capital Corporation, we may even finance their inventory and accounts receivable. We accept the risk and provide RoundPeak with money to invest in new or expand existing contract manufacturing sites around the world . . . So, here, in a rather simple example, you can see where goods, information and money are coming together seamlessly under the catalyst of electronic commerce . . . As you can see, electronic commerce not only connects those three flows of commerce . . . Five years ago, most business planners could not even imagine such a world.
Time is compressed and the economic effects are magnified.
For instance, according to a recent study by Morgan Stanley Dean Witter, buying airline tickets over the Web results in 87 percent reduction in distribution costs. Banking online, meanwhile, results in a 90 percent reduction in distribution costs. The same dynamics reshaping the physical goods supply chain are changing the financial supply chain. We call it disintermediation . . . In banking, it often means the elimination of the banker as the financial middleman.