Accelerating Sales Online - A Panel of Leading Sellers

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Accelerating Sales Online - A Panel of Leading Sellers

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

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