Go with the Technological Flow
Technology tools offer distributors a lifeline to future prosperity.
Charles Darwin theorized that it isn't the strongest species that survive, nor even the most intelligent, but the ones most responsive to change. For print distributors, the father of evolution's pronouncement underscores their need to adapt to the tools of technology if they hope to have a fighting chance in today's marketplace.
"Distributors who don't have a technological edge will be lost," acknowledged Steve Stone, president of Western Business Forms, Fresno, Calif. While there's no substitute for solid salesmanship, those skills must be coupled with the convenience and efficiency that only technology provides in order to satisfy and retain customers. "If I can't offer it, my competition will," continued Stone. "Why give my customers away?"
Technology also adds a cohesiveness and a time-saving element to Western Business Forms' internal workflow. "I run a lean operation—sort of a one-man show—so I need to streamline as much as possible to make every minute count," Stone said. "Technology sustains distributorships, especially the smaller ones, and provides the look and feel of a bigger company."
Software to the Rescue
Forced by a cumbersome, user-unfriendly operating system to shop for a new one, Stone saw a demo of the Windows-based OETS (order entry tracking systems) software from Integrated Graphics Data Systems (IGDS), Las Vegas. The distributors' version manages client and prospect information, creates requests for quotes, and generates proposals, purchase orders, acknowledgements and shipment notifications. The application features 24/7 Internet access and updates information once a day or on demand.
Charlie Owens, vice president of sales at IGDS, was a distributor for 13 years and understands the type of functionality that industry professionals require. "A lot of the things that distributors have to think about are pre-set into the program, including a profiling system that establishes individual customers' preferences for receiving communications, such as confirmations and notifications," said Owens. "It's this kind of intuitiveness that must be in trade software to save time, shorten the learning curve and keep things simple."
OETS automatically faxes Stone's customers everything they need to know about their order activity. "They can also use our Web site to look up order history, review current orders and easily input items they may have forgotten," he added.
Stone recalled that it took approximately one month to learn a new interface. OETS also comes with 60 days of free help that eases the transition. "It's a very visual, user-friendly system with a one-button approach," he said. "I liked the fact that I could easily switch into the test program, play around and make my mistakes without screwing things up, and switch back to the interface once I got the function down."
When The Shamrock Companies, Westlake, Ohio, realized that it needed a more robust operating system, consultants were brought in to determine the proper technology platform and architecture the company should be striving for. Said Dave Fechter, executive vice president, operations, "They suggested that a company of our size that's growing at a compound rate of 20 percent a year for the past 15 years and acquiring businesses needed an ERP (enterprise resource planning) solution, rather than the unlimited access system we were using."
He explained that Baan, from Toronto-based SSA Global, was the logical choice since there was a base of people in the company familiar with this ERP, and the software was already installed on the operations and fulfillment side. "The change required individuals with different skill sets in some key positions, so there was some turnover in the IT department, including the director of IT," noted Fechter. "We've also hired a CIO in a somewhat elevated technological position, and he brought in a new crew that's more in tune with ERP and high-level architecture."
Fechter agreed with Stone that technology decisions are driven both by operational necessities and customer demands. For example, Product Link is a Web-based interface that allows customers to interact with The Shamrock Companies, and there was increasing feedback that Product Link's business-to-business-oriented look and feel could do with some sprucing up. "Customers still needed all of the B-to-B capabilities," explained Fechter, "but they wanted a sexier, retail-type front end. We also needed it to be a stable platform of information within the ERP system, rather than just pockets or silos of information." Now, Product Link is more of an e-commerce site than a warehousing release program, where customers can design and proof items online, as well as maintain an electronic library of products.
The Shamrock Companies serves many marketing- and marketing communications-oriented customers for whom identity and brand reinforcement are particularly important. "Our customers are looking for flash and glitz," said Fechter. "The guys that just put ink on paper can't compete anymore with companies offering customers online design and inventory management capabilities."
At some point, most new customers will interact extensively with the company's information technology. "Our salespeople can no longer function as self-contained marketing forces," stressed Fechter. "People from the operations side will also have to be involved. The sales reps must also adjust by elevating their skill sets in terms of speaking and selling technology."
Geek Speak
Being rather computer literate is advantageous for Stone and Fechter. "If I'm going to remain competitive, I have to keep up with technology and necessary upgrades. It's an ongoing process," said Stone.
Fechter lives by the mantra that 80 percent of the products and services that The Shamrock Companies supplies today will change five years from now. "And, with that will be changes in technology," he said.
However, many distributors are not so technology-savvy, and Owens would like to see the industry amplify the amount of training and education that it offers distributors in this area. "People can't learn anything in one-hour seminars except what they don't know and why they need to know it," he observed. To help get up to speed, Owens recommended self-tutorials offered by software manufacturers, training videos—which can also be shared with office staff—and evening classes offered at local community and junior colleges.
He also suggested hiring experienced, knowledgeable, temporary staff certified in the programs that distributorships are implementing. "The key is to find people who also have strong communication skills, and literally farm the knowledge," advised Owens. Distributors just may discover a good customer service representative at the same time. "I've seen more distributorships hurt themselves by putting unqualified, cheap labor into this position," he continued. "It just doesn't work. Our industry is too exacting—not complex, but it's very precise."
He noted that distributors make similar mistakes when purchasing computers. "They go with cheaper alternatives that end up costing them in the long run," said Owens. "There's also a tendency to treat old technology—purchased for higher prices than today's systems—as capital assets, rather than depreciating tools. Technology gets old and wears out, and it should be written off and replaced."
Owens went on to say that failure to back up data is another serious problem. "There are $150 scenarios available today that are completely automated, stand-alone systems that plug into the high-speed port in the back of the unit," he said. "If a system crashes, the $150 drive can have the company up and running in 10 minutes."
Horror stories abound concerning damage caused by bad equipment and bad networking, and Owens stressed that it's critical to seek assistance from qualified, certified individuals, rather than friends who happen to be good with computers. "It's cheaper in the long run," he said.
Choosing software and integration systems requires careful consideration. "A lot of guys are going to handheld PDAs, but the functionality may not be there," cautioned Owens. He suggested a thorough review of office needs and Internet needs per workstation and noted that companies selling business systems can offer good recommendations for required hardware. "And, when it comes to networking systems, the old daisy chain of hardware in the office isn't going to cut it anymore. Distributors need to go to a hub and a router and put in the modern, affordable technology that's now available," he continued.
Going with free e-mail services can be a costly mistake, as well, according to Owens, since they don't create a professional, successful-looking business environment that savvy customers will expect.
He explained that for the most part, the industry to date does not have platform-to-platform ordering, and so the Internet is the bridge between the various systems that distributors and manufacturers use, and creates the interface that facilitates end-user communications. "Unfortunately, some distributors view the Internet as the biggest threat to the printing industry when, in fact, it's saving their businesses," said Owens. "Technology can broaden distributors' territory and make them more accessible with less staff. It's the difference between 24/7 and 'It's after 5:00 pm, so forget it.' Many distributors are also realizing that they can now live where they want and work from home while keeping customers where they are. The electronic cottage is finally coming."
By Maggie DeWitt