High-Tech Is in High Demand
Customers' expectations of competent, reliable distributors include offering the latest in business operations efficiencies.
Can distributors be successful without technology? To put things in perspective, consider just one aspect of serving today's marketplace.
John DeAngelis, president of Hauppauge, New York-based Bradley Marketing, recalls when the typical lead time for most standard products was six weeks. "Eventually, the industry migrated to four-week lead times. Now, two weeks—sometimes even five to 10 working days—is the norm," he observed. "Customers' expectations have risen in terms of having artwork and proofing turned around. They just can't wait any longer, which puts pressure on distributors."
To remain competitive, distributors look to technology solutions for quicker, more efficient operations. "We created a graphics department as a service—not a revenue center—to get proofs, typesetting and designs within 24 hours," DeAngelis continued. "We then have the technical capabilities to send a pdf file, or images that can be downloaded from our Web site."
Dave Fechter, vice president of operations for The Shamrock Companies, headquartered in Westlake, Ohio, agreed that satisfying customers means offering the convenience and efficiency that only technology can provide.
The Shamrock Companies offers core services including warehousing, distribution, pick-and-pack, kitting and fulfillment, and a versatile technology platform that delivers complete and seamless project management is critical. Fechter explained that Baan software is currently being used to run four of the comapny's five fulfillment centers, but it has been slated for replacement next year.
"We have approximately 200 customers who log onto the online application @productlink that allows them to obtain print-on-demand, place orders, release products, track orders and proof online. The system also provides detailed reports showing usage, sales figures and cost-center breakdowns. "Some customers are grateful almost to the point of tears that these things are available to them," observed Fechter. "Still, we have other customers who order by phone or fax and require no special reporting at all."
Distinguished Service
DeAngelis noted that, at the very least, Internet-based technology is expected in the marketplace. "For instance, we recently completed quite a few requests for proposals and quotes for large corporations on the promotional products side, and it's understood that company stores and inventory management programs will be part of the services that the distributor provides," he said. However, distributorships such as The Shamrock Companies and Bradley Marketing are going above and beyond what is expected and are using the latest technology to meet their customers' evolving needs.
According to Bill Repp, The Shamrock Companies' director of IT, the company is currently conducting a rewrite of the initial application utilizing the newer .NET and Sql Server 2000 technology from Microsoft.
"The upgrade will add features that are business-to-consumer-oriented rather than business-to-business to allow more random customers to place orders and obtain reports," Repp explained. "Moving to a platform that's touted as the latest and the greatest will add a fair share of functionality that isn't available now." For instance, it will allow for the uploading of logos so that customers ordering wearables will be able to see an image of an actual imprinted piece.
Repp went on to discuss a unique application that is a type of ad hoc document generator that creates training manuals online for particular types of customers.
After customers upload and categorize their own content, manuals covering specific information can be generated by going in and selecting chapters and/or certain sections within the chapters. For example, one customer manufactures a wide variety of infant formulas. Instead of a huge binder covering the entire product line, manuals can be created focusing on individual formulas and elements to be covered in a training session.
The manuals can even be personalized with the date, title of the session and the name of the instructor. "At the push of a button, the program will grab all of the applicable pieces and put them into a paginated, print-ready document featuring a table of contents unique to that document. I only know of one or two other comapnies that do this," continued Repp, "and one is overseas."
Jim Ridley, Bradley Marketing's IT manager, emphasized that the company does not outsource any of the technical services it provides. "We actually build the Web sites, provide the graphics and handle the administrative and technical support," he said. "We also integrate with existing programs and offer three proprietary software systems so that customers can choose what's best for them. All they need is an Internet browser."
One system is an off-shoot module of the company's mission-critical accounting, warehousing and inventory management system called Quantum, and Ridley added that the company has the ability to work with Ariba—a system that many large companies with multiple vendors use to produce online catalogs for ordering and to request quotes.
Ridley also talked about a unique customer benefit regarding company stores and online customer systems. "We've developed both stock and customized reporting features that not only track usage, but identify which products are being looked at or ignored, what's hot and what's working for other customers. This information enables us to work more effectively with customers to make recommendations to improve business," he said.
Another value-added service that Bradley Marketing offers is online PowerPoint presentations of promotional items. "Poring over catalogs is tedious and time-consuming," DeAngelis said. "Within minutes, we can put together 15 to 20 images, essentially getting rid of the clutter and letting the customer get right to what he or she needs."
Ridley commented that he will be revising the company's Web site to offer more tools and utilities, and is working on a further integration of Ariba with the online stores. "Future IT projects also include working with the search engine Google to allow potential customers to view our Web site among the top five 'hits' they receive when searching for products or services," he continued. DeAngelis added that by the end of the third quarter, Bradley Marketing will have installed a single-unit fax/copy/scanner machine capable of presentation-quality scan-to-print color copying.
The Heart of the Matter
According to Repp, "The Shamrock Companies' IT budget is substantial and will remain so." He explained that the IT team consists of seven individuals spread out across three states and is made up of network people, Web site developers, implementers/trainers—including an individual devoted solely to training new customers or implementing changes—and an administrator. Ridley supervises a team of four technology specialists for Bradley Marketing and approximated the IT budget to be $250,000.
Both companies have multiple branches, and rely on technology tools to add a cohesive element and time-saving efficiency to their own internal business operations.
The Shamrock Companies makes use of an Intranet, which has human resources, inter-office communication and some reporting functions, while sales tracking is done through the @productlink application.
Bradley Marketing's InfoNet features human resources functions, accounting systems, general operations, help desk support, sales tools and marketing assistance. Ridley explained that the system has the ability to go in and track sales activity and any other mission-critical data relating to accountability and produce a chart or an Excel spread-sheet.
Despite the unavoidable reliance on technology in today's marketplace, successful distributors know that there is one thing that will never change.
"Technology doesn't compromise personal service by taking distributors away from their customers," DeAngelis noted. "It just allows distributors to get answers to them faster. And, helping the customer look good in the eyes of his or her supervisor builds goodwill."
Fechter agreed that technology can never replace face-to-face customer service, and commented on the importance of good old-fashioned performance evaluations to help monitor customers' satisfaction with sales reps. "Also, a distributor that fails to keep in regular contact with customers risks missing out on additional sales opportunities," he added.
By Maggie DeWitt
- Companies:
- Shamrock Companies, The
- Places:
- New York