Print experts report that business and e-commerce evolve together.
The bar for good business within the print industry has been raised for some time now. Since e-commerce opportunities infiltrated the print arena in the 1990s, many distributors have felt compelled to utilize Internet technologies in order to conform to modern business practices—a logical decision since so many consumers are demanding faster, more efficient print solutions. Still, e-commerce is considered to be a new application, and those who use it continue to adapt to its ongoing evolution while those deciding to use it search for suitable modules.
The question for those who do utilize e-commerce, then, is whether or not it is living up to their expectations. Julie Pritchard, president of TopForm Software, Norcross, Ga., said it is.
"E-commerce is definitely the hot product of the day. We've found that our distributors want to build an electronic fence of constant communication around their customers, which they can do with e-commerce," she said. "Customers can become quite adapted to 24-hour access to information—service that reaches beyond people's expectations."
John Smilko, vice president of Kramer-Smilko, Bel Air, Md., agreed."The Internet serves as a great tool for squeezing efficiency out of a distributor's operation since everything in the print business is customer driven."
And sales figures typically speak for themselves. Smilko cited a Nashville customer who was initially skeptical of e-commerce. "That client did not think he needed e-commerce software but was glad he opted to implement it after it helped him land a $2 million account," said Smilko.
In fact, Smilko added that it is safe to say that all print sales are driven by the need for effective e-commerce solutions. "No longer are cost savings to the distributor the primary benefit," he said. "It's become a tool that opens doors previously closed to most independents. Now we can document to prospects how customers have landed millions of dollars in new business."
Though so much positive feedback surrounds e-commerce, some distributors are still holding back on investing in it. This may be because of questions about what type of provider to choose, how much to invest or how to promote it.
According to Smilko, some distributors may never invest. "There is a lot of discomfort associated with change and there are those out there who may wait until they retire and sell the business. Others are just waiting for the right opportunity," he said.
Though change causes some discomfort, so does choice. Pritchard noted that some distributors who want to implement an e-commerce solution find it difficult because the solution needs to integrate into their back-end accounting. Although TopForm customers have this option with Web.ec or via XML, interoperability with e-commerce solutions, like Four51, produces two unattractive options: one that requires information to be rekeyed into an accounting system—known as the EDIflop syndrome—and one that requires expensive custom development. "The first is inefficient and the other expensive, and that is where the hold up is," she said.
Pritchard added that many distributors may find a need to customize their e-commerce offerings to meet the specific needs of their customers. "If their boiler plate e-commerce solutions do not allow for this flexibility, they may fall short in today's competitive market," she said.
Once a provider has been chosen, however, and the site is up and running, distributors then need to be able to promote it and its capabilities. One of the best ways to do so, said Pritchard, is to provide a CD presentation so that salespeople can call on customers and go through a canned presentation that has been customized for the prospect. They can then follow up with a live demo. "Each of these clients will create a demo site that has product information that they can share with their prospect. And, if it's an important enough prospect, they may take time to create a more relevant site.
In addition to advancements in e-commerce packaging, e-commerce itself continues to move forward. For instance, Kramer-Smilko's recent upgrades include enhanced capabilities for branding the ordering site for the distributorship and its customers, a new office supply web-ordering system and a company-store format, which is nearing completion. In addition, within two to three months Smilko plans to have an Ariba punchout module completed.
"Innovation within the e-commerce world will be substantial and constant for years to come," Smilko said. "Providers are always looking to streamline and simplify their capabilities, which should call for drastic changes within the printing world."
By Sharon R. Cole