Why wholesalers need to embrace the Web

BY STEVE MCLAUGHLIN
Special to The Wholesaler

The other day an e-mail crossed my desk from a distributor I met at a recent tradeshow. The message contained a humorous list of ways to know the year is 2006. Item number seven caught my eye: Every commercial on television has a website at the bottom of the screen.

Maybe that’s not so funny, but it is very true. The internet -- e-mail, the Web and everything that goes along with it -- has become a fact of life for us all.

Yet, surprisingly, many plumbing and HVAC wholesalers remain reluctant to employ this technology in their businesses.

Why?

The reasons for this reluctance remain unclear.

Initially cost prohibitive, the expense of an internet connection has dropped dramatically in recent years. Time has also erased concerns about the technology being unreliable or a short-lived fad.

The truth is, the internet -- like telephones, fax machines and cell phones -- is here to stay and an important tool in building the success of your business.

Ask your customers
Not convinced by the explosive growth of Web-capable person digital assistants (PDAs) and cell phones? Do an informal survey of your best customers. Ask them if they have internet access and how they use it in their businesses.

Then ask if they would access account information if it were available online or if they see value of having the ability to place orders 24 hours a day, seven days a week.

What you’ll probably find is that the idea of the added service appeals to them and they will use the internet if that is the way to make it happen.

The online benefits
A well-designed website that is tied directly to your enterprise software solution can give your customers easy and secure access to key account information and order capabilities 24 hours a day, seven days a week. This can dramatically shorten the sales cycle, speeding order processing and thereby reducing the amount of safety stock you keep on your shelves.

Giving customers online access to information provides faster service than calling or faxing, helps your customers streamline their operations, and frees your employees from lengthy phone conversations answering basic questions. Since your customer service representatives aren’t spending their days re-keying orders and answering customer inquiries, they can spend their time doing what most benefits your bottom line -- growing your business by selling to new customers.

A website can help sell to new customers too. Since the internet knows no geographic bounds, a website can open new markets to your business without the expense of additional staff and warehouse space.

Going beyond the web
Of course, the internet offers you more than the benefits of a Web-based storefront. It can also streamline your relationships with your manufacturers and other wholesalers to better manage your supply chain.

Many wholesalers, tired of playing phone-tag, have realized that e-mail streamlines communication processes and provides a clear channel over which they can dispense timely, important information -- and retain a written record of it.

The most progressive wholesalers have entered into internet trading networks, in which they use the Web to source stock. Internet trading networks enable you to access millions of manufacturers’ and other wholesalers’ items. When a customer calls for an item that you’re currently out of, a sophisticated network allows you to broadcast an electronic request to several trading partners.

With no human intervention, responses quickly appear on your screen. You can service the customer while he/she is still on the phone. Many wholesalers have found that trading networks actually provide an excellent means by which they can offer customers integrated supply -- a service that increases customer satisfaction while it increases sales.

Used correctly, the internet is a powerful business tool, waiting to be exploited, that can be used to streamline operations, reduce costs and increase sales.

 

Steve McLaughlin, senior vice president and general manager of Activant’s wholesale distribution group, has been involved in developing technology for distributors for nearly 25 years. A leading technology provider for the plumbing and HVAC industries, Activant develops comprehensive enterprise software solutions, an internet trading network, and professional services to help wholesalers improve customer service and maximize the return on their technology investment. For more information about Activant’s solutions for wholesalers, visit distribution.activant.com.