The dot-com boom may be over, but the Internet is still affecting the way manufacturers and distributors connect with their customers and suppliers.

"Companies that put together a strategic plan using best supply chain practices and the Internet can save at least 3% a year on their purchases and operations," according to Dave Nelson, vice president for worldwide supply management at Deere & Company. "I've seen greater returns, but just a 3% savings would double the profitability of most companies."

Nelson made his comments at a recent APICS (www.apics.org) executive conference.

Although the solutions will vary according to the needs of a specific company, strategic e-business initiatives can be implemented in all areas of an enterprise, Nelson said.

At Deere, Nelson and his colleagues have combined e-business with operational improvements to gain the greatest benefits. For example, a $3 million investment in transportation planning systems, including software that cubes out a truck trailer to optimize shipments, saved more than $6 million.

Using a third-party logistics company (3PL) to consolidate and cross-dock less-than-truckload shipments into full truckloads has also reduced transportation costs and the amount of inventory at Deere's plants.

The secret of success, Nelson said, is to run smart, run fast, and run lean.