HI-TECH firm Connectology is making huge savings after launching itself into electronic commerce.

The Thame company, which sells computer networking equipment, has now completed six months of operating its e-commerce system and has already achieved a 100 per cent payback on its investment - seven months earlier than expected.

The company says it is now saving 88,000 a quarter after eliminating postal mail, faxes, and other hard copy and administrative processes.

Connectology recently hired two salespeople through its website with savings of about 12,000 in recruiting expenses.

The firm was the highest placed Oxfordshire firm in the latest Sunday Times Virgin Atlantic Fast Track 100 league table of the UK's 100 fastest-growing firms, scooping ninth place overall. Sales have grown 128 per cent each year since the firm was set up in 1994.

Managing director Jonathan Wagstaffe said he believed the move put Connectology ahead of the e-commerce game in this country. He said: "As an organisation dealing with technology, we have to be ahead of the field.

"This e-commerce solution lets us say to companies of our size, you too can do something very exciting in e-commerce without huge investment. Having a great deal of presence in this space gives us real credibility."

He said predictions that any company not embracing e-commerce will fail within years pose serious problems for smaller firms.

The company is using the ezMerchant e-commerce solution from e-business firm Digital Union.

Story date: Monday 10 April

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