Our approach to E-Commerce goes against the current flow. We're not just reducing costs, we're preserving value for our customers.

There are those who claim that the role of e-commerce is to streamline transactions and reduce acquisition cost, period.

At Cooper, we're willing to swim against that tide.

Because, while we will utilize the Internet as a tool to strip costs and increase the ease of doing business with each other, we will not abandon our long-standing commitment to our customers: to create value across the supply chain and through the entire life of Cooper products and systems.

Our enterprise resource planning system uses the latest information technology to ensure that products move from point-of-origin to that of use as quickly and cost-effectively as possible. We are also dedicated to maximizing cost savings through the total life cycle of your system. Since TLC cost calculation takes into account everything from purchase and distribution to maintenance and disposal costs, it offers the potential for the greatest return on investment.

As an example, today Cooper has more than 15 major strategic alliances with customers who are realizing an average savings of 30 percent on TLC costs. Compare that to the 5 to 15 percent savings estimated by industry analysts for e-commerce customers who make decisions based on acquisition cost alone. Our strategic alliance partners derive many other advantages as well, from exceptional customer service to our research and development expertise, from inventory management to channel efficiencies.

And soon, our ability to conduct business on the Internet will bring additional transactional efficiences. On the customer side, we will supply Web-enabled, best-in-class solutions tailored to your needs. We have also entered into an agreement with the industry's leading supplier consortium. Their Web site will provide one-stop shopping for national accounts, with access to Cooper Power Systems and Cooper Industries products.

Which brings us to another important difference between our e-commerce strategy and that of others. At Cooper, we make a distinction between MRO-type products, which are appropriate to be sold on the Web; and apparatus-type products, which we believe are not. Since apparatus products affect safety and performance at your customer site, where stringent reliability requirements of five-nines or better must be met, we continue to recommend face-to-face meetings to determine customized solutions.

That is why, when we participate in on-line auctions for apparatus products, we will not vie to be the lowest-price provider, but rather the highest-value provider. We will put that value proposition in writing, including benefits that simply cannot be realized on the Internet. Our Systems Integration support is one example. Our engineers need to be able to work directly with you to identify solutions that address your specific reliability and power quality issues.

It takes more power and stamina to go against the flow. But Cooper customers find it's worth our effort.