The Progress of eCommerce in the Electrical Industry - Milos Jancik, M. Jancik Consulting
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Transcript of The Progress of eCommerce in the Electrical Industry - Milos Jancik, M. Jancik Consulting
Progress of E-commerce in the Electrical Industry
• Transformative nature of technology in service delivery
• Results of the survey of Manufacturers and Distributors
• Inhibitors and enablers of Electrical Industry Solutions
• The role of Industry Standards
Transformative Nature of Technology
• Airline Travel
• Travel Agent → Internet Booking
• Restructuring of the Travel Industry
• Banking
• Bank Cards → ATMs → Internet Banking
• Changing role of Bank Branches
• ING Direct
• Healthcare
• Paper Health Records → Electronic Health Records
• PAC Files (Picture Archiving and Communications)
• Cost savings, Better Quality Healthcare, Outsourcing
Internet use by Contractors
Once a
week or
more
%
2 to 3
Times a
Month
%
Once a
Month
%
Every 2
or 3
Months
%
Every 4
to 6
Months
%
Once a
Year
%
Never
%
Research Buying Decisions 64 15 11 2 2 1 5
Stock Checks, Checking Order Status, or Catalogue Searches
67 10 8 2 1 1 10
Product Selection Tools /Configurators 58 13 14 2 4 3 5
Open Links in E-mail Newsletters 58 14 10 2 2 3 11
Download a Report, How-To Guide / White Paper
47 17 15 4 4 3 10
On-Line Ordering 46 10 14 5 3 3 18
Access Social Networking Sites for Business Purposes 29 10 9 3 3 2 45
Webinar Participation 9 5 15 8 6 8 49
Base: Those who used the web/Internet in past year (n=287). Excludes “don’t know/not applicable” responses.
5
Two-thirds of electrical contractors access the web/Internet weekly to conduct stock checks, catalogue searches, and research buying decisions.
Business Drivers of E-commerce Development
• Changing buyer behavior
• Changing demographics
• Customer service opportunities
• Improvements to operations
• Pressure on margins
• Competition
Distributor Survey - Questions
• Size of business
• Internet sales
• EDI transactions with customers
• EDI transactions with suppliers
• Info available on the distributor IT system
• What can suppliers do for distributors
Internet sales
• As a portion of total sales 10%
• By part # 100%
• By description 65%
• Configurator 12%
• Importance of internet sales 57%
EDI Transactions
• EDI with customers 12%
• EDI with suppliers 27% - 32%
• ERP info availability 56.5%
What stands in the way of internet sales?
• Proper product descriptions and a full catalogue of all
products or a portion of our products.
• Customer adoption & ease of getting data for our
ecommerce site.
• Attributed product information.
• Customers use web site extensively but phone-in orders.
What stands in the way of EDI with customers
• Standardization, customers’ comprehension of benefits.
• Cost benefit analyses do not warrant investment at this
time.
• Only large corporations are willing to use EDI.
• Customer capability, use with 220/9000.
• Matching issues.
What stands in the way of EDI with suppliers
• Supplier capabilities and willingness to implement EDI
• Availability of UPC codes on all products
• Supplier needs to be large enough to make it worthwhile
• Would like suppliers to pay half the cost of the setup of
EDI transactions; the supplier gets the biggest saving.
• Accurate data and differences in format
Info available on distributor ERP
• We have spent a great deal of resources on including
pictures, brochures, spec sheets, alternate products as
well as including items that go with the product. when they
sell teck cable automatically they get a list of teck
connectors they can include on the order. Just a prompt to
get a “a coke with those fries”
Non-monetary things suppliers could provide
• Data warehousing!!!!!
• Provide pdfs of all products that can then be used on our
ecommerce site for customers to view
• Better availability of images, descriptions and attributes
• Advise when there are price discrepancies
• Supply all price files in excel that include UPC codes
• Make all products bar coded
• Confirmations with accurate lead times
• Ship when promised
• Ease of order placement (stock checks, proactive delivery info etc.)
Manufacturer Survey - Questions
• Distribution channels - Electrical Wholesale, Retail
• EDI with Distributors
• Information to Distributors
• About IDW
EDI transactions with the distribution channel
• 30% of manufacturers do more than 30%,
• 40% of manufacturers do between 20 and 30%
• 85% do some EDI
EDI documents
• 85% use PO and Invoice
• 65% use order confirmation
• 60% use advance shipping notice
• 43% use additional forms
What stands in the way of EDI with Distributors
• Knowhow of EDI and resources dedicated to IS support
• Distributor readiness
• Systems capability
• Comfort level with fax transmission
• Currently, any Distributor that is EDI-capable has been
implemented.
• A desire to work together to improve accuracy
• Industry standard would make the whole concept much
more attractive
What would prompt you to populate IDW
• More information about IDW benefits and advantages
• Demand from our business partners
• Currently evaluating the advantages/disadvantages
related to IDW
• Need to meet customers’ requirements
• Greater acceptance from our customers regarding the use
of IDW
• To begin populating the IDW, we would need to see
requests from at least two of our distribution partners
• ROI
In what format do you provide product information to
distributors
• Catalogue 86%
• Excel files with pricing 93%
• IDW 38% 100%
• Familiar with Schema 57% 100%
• Data within 6 months 21% 100%
• Trade service 19% 100%
• Company website 69% 100%
Enablers of E-commerce
• Modern ERP software
• Reliable communications networks (VAN)
• Consensus on the business case
• Project management schedule
• Availability of technical assistance
• Consequences
The role of Standards
• Safety Standards
• North America - UL and CSA
• International - IEC, EN
• Product Standards
• North America NEMA,
• International - IEC, EN
• Quality Assurance - ISO 9000
• Environmental Compliance - ISO 14000
• Energy Efficiency Standards
The role of Standards
• UNSPC
• United Nations Standard Products and Services Code
• GTIN
• Global Trade Item Number
• IDEA IDW c/w Attribute Schema
• Industry Data Standard
The role of Standards
• Standards are required for good functioning of industry
• Standards need to be developed and owned by industry
• IDW is an extension to the existing set of standards:
• Provides a standard for the format and content of information
furnished by suppliers to distributors and assures accuracy and
synchronization of information.
• Provides a platform for third party APPS developers
Use of technology delivering customer service
• Business Decisions
• Enhance Customer Service Experience
• Reduce Operating Costs
• Create a Competitive Advantage
• Implementing an industry wide solution
• Requires a broadly based buy-in
• Project management approach
• On-going maintenance and support