MA: Web services could help our collaborative merchandising technology enable the retailers and the manufacturers to more effectively manage their business, increase their profitability, and reduce operation expenses.

INFORMATIONWEEK: What do you need to do to get retail buyers and suppliers to adopt your service?

	7thOnline's platform lets companies work together, president Chazen says.

CHAZEN: We talk to retailers and their suppliers and educate them about the business opportunity and how the technology really fits in. In the last year, with the large players that we've engaged--Claiborne, Federated, Saks--what we've learned is that cycle time is shortened, supply and demand is better met, information flows earlier, and stronger partnerships are developed. We're at early stages of this adoption, without question, but to open up the possibilities of collaboration to this community has enormous potential for increasing profitability and productivity down the road.

INFORMATIONWEEK: What do you think the future looks like for the use of Web services for E-commerce in the chemical industry?

GARFI: Our feeling is there's been a lot of hype around Web services. It's not really a concept that has taken strong hold in the chemical industry yet.

But, longer term, we fully expect that some of our tools and resources will be exposed via Web services. The key for us is to do it in a controlled and secure manner.

INFORMATIONWEEK: Is the logistics industry ahead of the customers you serve in terms of implementing E-commerce?

BOYD: The logistics industry is probably on pace with our shippers, if not slightly ahead, in terms of technology. On the other hand, our carriers typically lag behind the leading technology.

INFORMATIONWEEK: Why? Is it just because they have to meet the needs of the shippers?

BOYD: There's probably a number of reasons. The technology spending is certainly a big part of it. The carriers' focus is typically on other aspects of their business, whether that's equipment or driver issues. In many cases, technology is a lower priority.

INFORMATIONWEEK: Are the benefits of ChemConnect membership equally strong for smaller companies as for larger ones?

GARFI: Yes. To us, it doesn't matter what the size of the company is. My belief is the Internet itself levels the playing field somewhat for companies of all sizes.

INFORMATIONWEEK: Tell me a little about what GXS sees happening with AS2.

SEEGERS: AS2 provides a level of security for commercial transactions on the Internet that companies have been asking for for a long time. One of the things that AS2 doesn't provide is the semantic context for the documents that are being exchanged. So we intend to offer AS2 services to allow small or medium-size companies that want to connect to our service using the AS2 protocols.

INFORMATIONWEEK: I understand some major companies are migrating all their supply-chain transactions onto the Internet using the AS2 protocol. Do you expect ChemConnect members to migrate to AS2-based Internet transactions very quickly?