The Arrow/Schweber (A/S) group is a large-scale distributor of electronic components from a multitude of suppliers. The A/S group’s main clientele are medium and small original equipment manufacturers (OEMs) that require various semiconductor and electronic mechanisms, some with value added components. With its rapid acceleration as the leader in electronic distributors, Arrow has secured a large customer base with $6.5 billion in sales in 1996. Jan Salsgiver, president of the Arrow/Schweber group is required to make a decision about whether or not to implement an Internet based channel named Express to sell these components. Express would allow current customers and potential customers to shop for the best price while simultaneously having access to up-to-the-minute inventories. Moreover, distributors would be able to post their inventories and prices, which would give both small and large-scale buyers the opportunity to shop for the best prices. Since most large-scale suppliers such as Intel and Motorola deal directly with very large OEMs, these suppliers count of various distributors to meet the needs of the remaining customers that the suppler is not able to serve. Various suppliers utilize A/S to sell their standardized and propriety products. A/S main customer base of small or mid sized OEMs accounted for over 55% of its sales in 1996. Since these firms were too small for the suppliers to serve directly and since many required value added services and programming, A/S readily satisfies the demand for this customer base. A/S allows its customers to purchase in small amounts, with relatively short lead times, as well as providing credit management. Since A/S and other distributors have access to live inventories, customers are able to purchase the correct quantities when they need it. Furthermore, A/S serves large-scale firms as well; since many OEMs