PROGRESS OF E-COMMERCE IN THEELECTRICAL INDUSTRYSeptember 28, 2011St Louis, MO
Progress of E-commerce in the Electrical Industry• Transformative nature of technology in service delivery• Results of the...
Transformative Nature of Technology• Airline Travel  • Travel Agent → Internet Booking  • Restructuring of the Travel Indu...
Internet use by Contractors                                                             Once a              2 to 3        ...
Business Drivers of E-commerce Development• Changing buyer behavior• Changing demographics• Customer service opportunities...
Distributor Survey - Questions• Size of business• Internet sales• EDI transactions with customers• EDI transactions with s...
Company Size• 12% - under $25 Million• 41% - 25 to $150 Million• 47% - above $150 Million
Internet sales• As a portion of total sales    10%• By part #                      100%• By description                 65...
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 o...
What stands in the way of EDI with customers• Standardization, customers’ comprehension of benefits.• Cost benefit analyse...
What stands in the way of EDI with suppliers• Supplier capabilities and willingness to implement EDI• Availability of UPC ...
Info available on distributor ERP• We have spent a great deal of resources on including pictures, brochures, spec sheets, ...
Non-monetary things suppliers could provide • Data warehousing!!!!! • Provide pdfs of all products that can then be used o...
Manufacturer Survey - Questions• Distribution channels - Electrical Wholesale, Retail• EDI with Distributors• Information ...
EDI transactions with the distribution channel• 30% of manufacturers do more than 30%,• 40% of manufacturers do between 20...
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 readine...
What would prompt you to populate IDW• More information about IDW benefits and advantages• Demand from our business partne...
In what format do you provide product information todistributors• Catalogue                  86%• Excel files with pricing...
Enablers of E-commerce• Modern ERP software• Reliable communications networks (VAN)• Consensus on the business case• Proje...
The role of Standards• Safety Standards  • North America - UL and CSA  • International - IEC, EN• Product Standards  • Nor...
The role of Standards• UNSPC  • United Nations Standard Products and Services Code• GTIN  • Global Trade Item Number• IDEA...
The role of Standards• Standards are required for good functioning of industry• Standards need to be developed and owned b...
Use of technology delivering customer service• Business Decisions  • Enhance Customer Service Experience  • Reduce Operati...
The Progress of eCommerce in the Electrical Industry - Milos Jancik, M. Jancik Consulting
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The Progress of eCommerce in the Electrical Industry - Milos Jancik, M. Jancik Consulting

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The Progress of eCommerce in the Electrical Industry - Milos Jancik, M. Jancik Consulting

  1. 1. PROGRESS OF E-COMMERCE IN THEELECTRICAL INDUSTRYSeptember 28, 2011St Louis, MO
  2. 2. 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
  3. 3. 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
  4. 4. Internet use by Contractors Once a 2 to 3 Every 2 Every 4 week or Times a Once a or 3 to 6 Once a more Month Month Months Months Year Never % % % % % % %Research Buying Decisions 64 15 11 2 2 1 5Stock Checks, Checking Order Status, or 67 10 8 2 1 1 10Catalogue SearchesProduct Selection Tools /Configurators 58 13 14 2 4 3 5Open Links in E-mail Newsletters 58 14 10 2 2 3 11Download a Report, How-To Guide / 47 17 15 4 4 3 10White PaperOn-Line Ordering 46 10 14 5 3 3 18Access Social Networking Sites forBusiness Purposes 29 10 9 3 3 2 45Webinar Participation 9 5 15 8 6 8 49Base: Those who used the web/Internet in past year (n=287). Excludes “don’t know/not applicable” responses.  Two-thirds of electrical contractors access the web/Internet weekly to conduct stock checks, catalogue searches, and research buying decisions. 5
  5. 5. Business Drivers of E-commerce Development• Changing buyer behavior• Changing demographics• Customer service opportunities• Improvements to operations• Pressure on margins• Competition
  6. 6. 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
  7. 7. Company Size• 12% - under $25 Million• 41% - 25 to $150 Million• 47% - above $150 Million
  8. 8. Internet sales• As a portion of total sales 10%• By part # 100%• By description 65%• Configurator 12%• Importance of internet sales 57%
  9. 9. EDI Transactions• EDI with customers 12%• EDI with suppliers 27% - 32%• ERP info availability 56.5%
  10. 10. 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.
  11. 11. 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.
  12. 12. 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
  13. 13. 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”
  14. 14. 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.)
  15. 15. Manufacturer Survey - Questions• Distribution channels - Electrical Wholesale, Retail• EDI with Distributors• Information to Distributors• About IDW
  16. 16. 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
  17. 17. EDI documents• 85% use PO and Invoice• 65% use order confirmation• 60% use advance shipping notice• 43% use additional forms
  18. 18. 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
  19. 19. 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
  20. 20. In what format do you provide product information todistributors• 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%
  21. 21. Enablers of E-commerce• Modern ERP software• Reliable communications networks (VAN)• Consensus on the business case• Project management schedule• Availability of technical assistance• Consequences
  22. 22. 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
  23. 23. 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
  24. 24. 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
  25. 25. 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

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