Q: I am interested in the extra costs to my firm of having extra suppliers. If I am currently buying products from, say, seven different suppliers and I go to one that can supply all of the products at the same price, what is the cost advantage from fewe

Embattled department store group House of Fraser last week blamed a sharp industry slowdown and the high cost of overhauling its supply chain for a 33 per cent slump in pre-tax profits for 1998. But chief executive John Coleman said the group would reap the benefits of the supply chain upgrade to the tune of £4 million in cost savings this year, rising to £15 million in 2000-2001.

The government’s drive to make the UK a world leader in e-commerce took a step forward this month with the launch of a consultation paper outlining proposals for legislation. Building Confidence in Electronic Commerce suggests a range of measures to remove legal barriers and allay security fears over on-line transactions. The paper will form the basis of the e-commerce bill.

Manufacturers’ demands for a global “one-stop-shop” shipping service are being dropped in favour of low prices, according to one of the world’s major container shipping lines. Gunther Casjens, head of liner shipping at the Hapag Lloyd Group, told a seminar this month that there is a lot of talk about global services but not many takers when it comes to signing on the dotted line.