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Accelerating Sales Online - A Panel of Leading Sellers

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  • 1. © 2010 Ariba, Inc. All rights reserved.
    Accelerating Sales Online:A Panel of Leading Sellers
    SHI and B&H Photo Video Pro-Audio
  • 2. © 2010 Ariba, Inc. All rights reserved.
    2
    Business Commerce Is an Evolutionary Process…
    Innovative
    Expand Collaborative Channel and Poise for Growth
    Proactive
    Create Processes, Infrastructure and Resources
    Collaborative Commerce Business Value
    Responsive
    AddressAdditional One-offRequests
    Reactive
    Comply with First Customer Request
    Transformation
    Enablement
    Phases of Seller Evolution
  • 3. © 2010 Ariba, Inc. All rights reserved.
    3
    The Current State of Supplier Engagement
    Other
    10%
    10%
    Proactively engaged in collaborative business commerce
    18%
    18%
    Have at least 1 collaborative business commerce initiative
    51%
    51%
    21%
    21%
    Collaborative business commerce is a strategic initiative
    Note: Sample size = 350; Only one response allowed; 95% confidence level, with 5.25% margin of error.
  • 4. © 2010 Ariba, Inc. All rights reserved.
    4
    Introductions
    SHI
    John DAquila, E-Commerce Operations Manager
    B&H Photo, Video & Pro Audio
    Jerry Zorek, Manager of Business Development
  • 5. The Growth of SHI
    Global provider of IT Products, Services and Solutions
    22-Year Anniversary in 2011!
    1989 – regional software-only reseller
    100% Organic Growth since 1989
    Financially strong, stable and consistently profitable
    Every quarter, every year
    $ 3.8 Billion Revenue ($5B Imputed) in 2011
    Over 30% growth vs 2010 revenue
    1,700+ employees as of 7/2011
    Most Experienced & Stable Support
    Field rep: 8+ years, average tenure
    Management team: 12+ years, tenure
    Same Ownership, past 22 years
    Largest Woman & Minority owned Business in N. America
    Our customers
    Initial focus on strategic and enterprise accounts in the US
    Expansion to public sector, international, midmarket
    SHI Confidential
    5
    © 2010 Ariba, Inc. All rights reserved.
  • 6. Solutions, Hardware, and IT Services
    6
    © 2010 Ariba, Inc. All rights reserved.
  • 7. SHI’s eCommerce Evolution
    SHI engaged early in PunchOut activity with Ariba
    SHI Owners are visionaries
    Developed eCommerce Website 15+ years ago
    Developing new tools and features
    7
    © 2010 Ariba, Inc. All rights reserved.
  • 8. Leading Procurement Solutions
    eCommerce at SHI Today
    Goal
    Reduce Transaction Costs
    Improve Visibility of IT Spend
    Help Manage IT Assets
    Stand-alone or integrated with your procurement platform
    www.SHI.com
    SHIPS = SHI Procurement Solution
    • Most Flexible & Customizable: Approval Routing,Workflow, Asset Feeds, Comparison shopping, Reporting
    • 9. Integrated with B2B platforms
    • 10. Supports both cXML PunchOut & OCI Roundtrip
    Level II PunchOut and Static CIF Catalogs supported
    8
    © 2010 Ariba, Inc. All rights reserved.
  • 11. SHI’s Ariba Experience
    First PO from Ariba in 1999
    Ariba for 2010
    467998 transactions
    59 Buying Organizations
    $441,563,207.86 in Rev
    #4 supplier overall
    2011
    11 new deployments/testing
    Transactions/Revenue up 20%
    9
    © 2010 Ariba, Inc. All rights reserved.
  • 12. What I Preach
    Standardization
    Treat all customers like they are a Fortune 10
    Say “Yes” and make it happen
    Work the details behind the scenes
    Ensure the catalog is priced and leveled correctly
    10
    © 2010 Ariba, Inc. All rights reserved.
  • 13. Suggestions to Buyers
    Don’t be afraid
    Start with connectivity
    Take advantage of supplier investments
    Customized sites
    Website search capabilities
    New features
    Leave CIF for suppliers without sites
    11
    © 2010 Ariba, Inc. All rights reserved.
  • 14. Lessons Learned
    • Poorly defined integration requirements
    www.cxml.org is NOT sufficient
    • Unrealistic timelines
    • 15. Poor coordination with suppliers
    © 2010 Ariba, Inc. All rights reserved.
    12
  • 16. © 2010 Ariba, Inc. All rights reserved.
    13
    Introductions
    SHI
    John DAquila, E-Commerce Operations Manager
    B&H Photo, Video & Pro Audio
    Jerry Zorek, Manager of Business Development
  • 17. © 2010 Ariba, Inc. All rights reserved.
    14
    Who is B&H Photo, Video, & Pro Audio
    Our company
    World-class provider of creative technology and AV products
    Professional and consumer photo, audio and video as well as audio/visual presentation, computers, surveillance, binoculars & scopes, film & media, lighting & studio, portable & home entertainment, underwater equipment and much more.
    Serving professional, corporate, education and government sectors
    World-class customer service
    Founded 1973
    Our business
    Creative technology
    An unfamiliar category for many corporate, education, and government buyers
    Price volatility
    Large % of electronic content can lead to significant decreases in MSRP
    Visit: www.bhphotovideo.com
  • 18. Welcome to B&H Photo
    Welcome to B&H Photo
    Welcome to B&H Photo
    Sales 2.0 Success Story
    • 70,000+ sq. ft. SuperStore
    • 19. Internet’s largest independent retailer of photography, video and audio equipment (Alexa ranking in top 1,000)
    • 20. Ariba a core aspect of our E-Commerce strategy
    15
    © 2010 Ariba, Inc. All rights reserved.
  • 21. © 2010 Ariba, Inc. All rights reserved.
    16
    Why E-Commerce?
    Adapt to changing buying habits
    Capture additional share in accounts
    Provide accurate pricing
    Drive $40K+ online sales per day
  • 22. © 2010 Ariba, Inc. All rights reserved.
    17
    Our E-Commerce Evolution in Corporate/ Government/ EDU Segments
    E-Commerce journey began with a request from a large corporate customer
    500-item CIF catalog
    Static pricing
    Strategic investment beginning in 2008
    Move from IT ownership to marketing initiative
    Strategic cataloging
    From static catalog to dynamic PunchOut with full catalog
    From fax orders to electronic
  • 23. © 2010 Ariba, Inc. All rights reserved.
    18
    Our E-Commerce Capabilities
    Ariba Ready validated Platinum seller
    More than 10 years’ experience with Ariba Network
    Over 25 customers supported via Ariba today
    Member of Ariba Seller Steering Committee
    $10M+ in annual transactions
    25%+ annual growth in Ariba channel
    300,000 + items offered via PunchOut
  • 24. © 2010 Ariba, Inc. All rights reserved.
    19
    Our Ariba Strategy: Enabling PunchOut
    Why PunchOut?
    Accurate pricing
    Full catalog
    Expedient shopping experience
    What should you expect from your vendor?
    300,000+ item catalog, 1600+ brands, most in stock and ready to ship
    Pricing updated every 30 minutes
    Customer enablement in 3 weeks or less
    Win-Win success story
    Large buyer initially managed catalog with a 500-item CIF catalog updated annually
    Pricing became outdated usually resulting in higher prices
    Discontinued items were in catalog and new items were not
    Update to 40,000-item CIF catalog resent monthly which saved the buyer hundreds of thousands of dollars
    Now we provide a 300K+ item catalog via PunchOut, updated multiple times daily
  • 25. © 2010 Ariba, Inc. All rights reserved.
    20
    Our Ariba Strategy: Helping Buyers Address Rogue Spend
    The problem: spend occurring outside of preferred channels
    Lack of awareness
    Non-compliance
    Need it fast
    Typical customer approach
    Categorizing creative technology
    Who owns this category of spend – audio visual? IT?
    Push an existing vendor to provide
    Efficiency/economies of scale issues
    Do nothing
    Our approach
    Identify an owner
    Drive visibility through e-Procurement
    Get what you need fast and easy
    Rogue Spend – Most Categories
    Rogue Spend – Creative Technology
  • 26. © 2010 Ariba, Inc. All rights reserved.
    21
    Best Practices
    For Buyers
    Understand your rogue spend
    Leverage catalog technology for contract/price compliance
    Work with specialized vendors
    For Sellers
    • Be honest
    • 27. Expand lines in your category
    • 28. Visibility of category
    • 29. Product knowledge and expertise
  • © 2010 Ariba, Inc. All rights reserved.
    22
    Questions?
  • 30. © 2010 Ariba, Inc. All rights reserved.
    23
    Additional Resources
    Webinar Series: Business Commerce Experts
    Kevin Govin, MarkMaster
    Chip Graham, EBSCO
    Cara Balint, Insight
    Robert Calvert, Hewlett Packard
    Brady Seiberlich, National Business Furniture
    Upcoming event:
    RockTenn, OfficeMax, Insight
    November 17, 2011`
    For more information, please contact us at
    programs_info@ariba.com
  • 31. Thank You
    ** Ariba Confidential© 2011 Ariba, Inc. All rights reserved.
    24

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