2. Rethinking the logistics of order
distribution and management
Executive summary with a total lack of end-to-end increase, or even maintain sales in
visibility of the order status. the midst of low interest rates, high
Home centers and manufacturers unemployment, and lower levels
share a common challenge. When At the same time, the absence of of new housing construction.
it comes to special order sales, or order history represents a host of
installed home products, they often potential lost opportunities. Without Directives to reduce costs,
struggle with manual, paper-based, a complete and consolidated order improve margins, and streamline
and time-intensive order processes. history, it is difficult to analyze the operations must be balanced with
Whether it’s for counter tops, performance of partners, products, the need to increase revenues
cabinets, floors, windows, or a variety stores, campaigns, and promotions, and serve customers in new and
of other products, order information and develop relevant, impactful better ways. Surviving in this
may be scattered across a complex programs to improve sales. environment requires companies to
network of individual store locations, operate more efficiently, to attract
manufacturers, distributors, Surviving and thriving in and serve customers better, to
fabricators, and installers. maximize their sales channels, and
an uncertain economy to take full advantage of partner
This causes undue strain on networks. Industry has responded
Ongoing turmoil in the overall with intense focus on service,
employees, customers, and partners.
economy and specifically in the process management, and cost
Employees spend too much time
housing industry has created control. The following table shows
trying to find order information, and
pressure on home centers and their some of the actions that will help
customers may become frustrated
manufacturing partners to do more companies achieve this focus.
by the time it takes to get answers
with less. Despite some positive
about their orders. A paper-based
economic indicators, companies
order distribution process leaves
in this industry still struggle to
partners throughout the network
A focus on operational efficiency and customer service
Manufacturers Retailers
Integrate seamlessly with the retail process Close every transaction efficiently
Use analytics to improve marketing promotions Streamline the supply chain process
and incentives
Become an advanced solution provider
Upgrade IT solutions, retire or extend the
functionality of legacy applications Simplify the customer experience, be
convenient, offer self-service options
Integrate online and offline customer experiences
Leverage installed sales for its better margins
Maximize sales
Capture analytics and increase order visibility
Increase order visibility
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3. Current practices be difficult for manufacturers to built to communicate with users’
stand in the way protect themselves against faulty existing accounting or enterprise
claims. Meanwhile, rebates across resource planning systems so
Current order distribution and the network of fabricators and order information flows to core
management practices often dealers can be confusing, time- business systems – for accounting
present operational and customer consuming, and prone to error controls, for example. It easily
service obstacles. For companies when using a manual process. interfaces to ERP application
to meet their goals in this regard, using customized application
they must overcome some of the Solving order logistics programming interfaces (APIs).
challenges they face today: and communication
Reporting and analytics
challenges
• Complex audit trail: Partners deliver useful information
throughout the supply chain have
One solution on the market today
no end-to-end visibility of the order The Cilio Partners Portal maintains
promises to solve the logistics
status and spend excessive time a history of client orders. This
and communication challenges of
(and cost) tracking order progress. information is used to provide
distributing and managing orders
for installed sales. It provides a reporting and analytics that help
• Communication challenges: clients see how well their products,
flexible, automated system for
Lack of order visibility across stores, vendors, and partners
capturing, distributing, and tracking
the supply chain creates perform for them. These analytical
orders. But it also goes beyond
communication bottlenecks among inputs can help companies design
the order to provide information
network partners. The constant promotions and campaigns that
and functionality that can help
turnover of store associates encourage vendor behaviors that
companies sell more products and
causes disruptions in customer align with business and sales goals.
communicate more proactively
communications, leaving no While a set of standard reports
with vendors and customers.
record of the people who were are available, users can work with
involved in the order process. Cilio to develop custom reports
Web-based order tailored to their business needs.
• Inconsistencies: Manufacturers logging and tracking Some of these reports include:
and retailers have different
measurement and pricing The Cilio Partners Portal is a • Order status
structures, which have to be web-based order logging and • Store status
reconciled manually. Pricing tracking system that captures • Product reports
structures are difficult to orders electronically via a single, • Vendor performance
maintain consistently between consistent process. It distributes • Order aging
manufacturers and retailers. them automatically to the proper • Fabricator sales and performance
partners within the channel and • Store associate sales
• No visibility into partner networks: makes the order available for viewing • Product order analysis
Getting accurate analytics any time, from any computer or
about performance of partners, mobile device. Via a simple user Incentivizing and rewarding
marketing campaigns, and interface, it allows all partners to get
promotions can be challenging. It visibility into each and every order partners for sales performance
often is impossible to determine from creation through completion.
For companies that want to
which partners are the highest
Because the Cilio Partners Portal is incentivize and reward partners
performers so they can be targeted
web-based, users are not required to for sales performance, Cilio also
for special promotions, incentives,
make costly software and hardware offers a web-based incentives
or rewards. Manufacturers
purchases to get started. They simply program that links directly to the
can’t readily track the
import their partner, customer, Cilio Partners Portal. The incentives
return on their investments
product, pricing, and employee program automatically captures
into sellers, such as advertising
user lists into the online database. order information from the Cilio
promotions and samples.
Once an order is logged into Partners Portal and provides up-to-
the system, it can be transferred the-minute data about individual
• Complicated warranty and rebate
throughout the partner network via a sales and points earned. Participants
management: Warranty costs can
number of standard communications in an incentives program can log
spiral out of control quickly in any
protocols, including EDI, AS/2, web into the system at any time to
manufacturing business. With only
services, and fax. The portal is also view their earnings and cash in on
a paper trail to go from, it can
Cilio Technologies, LLC | 200 South Executive Drive, Suite 101 | Brookfield, WI 53005 | ciliotech.com | info@ciliotech.com
4. rewards, including merchandise Engaging in proactive managing contact information across
and travel. Vendors can use this partner communications order management and promotions.
program to offer daily, weekly, or
monthly specials that generate The Cilio Partners Portal also includes Gaining more insight
more sales and build additional email marketing functionality that
points. This is an effective tool for: and control
enables companies to engage
with partners and customers on an With integrated functionality for
• Tracking analytics of ongoing basis, without depending on
program performance order distribution and management,
corporate marketing calendars and incentives, and marketing, companies
resources. It comes with an interface can gain more insight into and
• Establishing an authorized to Constant Contact®, a third-party
dealer network control over their order distribution
marketing tool that allows users to and trading partner network. They
design and manage email marketing can use these solutions to streamline
• Increasing sales through campaigns and track performance
the fabrication network the business process, improve
metrics. With this feature, companies communication and visibility, and
get built-in capability to stay create revenue opportunities.
• Exciting and motivating sales staff connected with target audiences, The following table shows a
as well as a single interface for summary of potential benefits for
retailers and manufacturers.
Improved efficiencies and customer service
Manufacturers Retailers
Raise the bar on customer service Raise the bar on customer service for special
order sales/installed sales
Drive increased sales
Enhance revenue and margin control
Provide insight to manage market segments
Provide insight to manage vendors, customers,
Improve financial controls and partners
Integrate seamlessly with retail processes Improve efficiency of store associates
Reduce cost and time for special order sales
management
Reducing cost and time for and invoices faster and close partner, product, and user
special order sales management transactions more quickly information in the client database
to eliminate costly errors
Companies can dramatically reduce • Ready access to essential
the time and cost spent on order documents: quickly and easily A single high-volume home center
distribution and management when retrieve copies of drawings could spend as much as $3.5 million
they switch to an automated system. and COCs stored electronically per store per year for associates’
It creates an electronic audit with the order details time spent tracking orders and
trail of each order for complete answering customer questions.
workflow transparency and • Improved efficiency of store This is when they are forced to
improved communications associates: Spend less time search through paper files and/or
among all the partners. Savings chasing paper and more place phone calls throughout their
can come in the form of: time serving customers company or to other vendors in the
supply chain for information. With an
• Faster reconciliation of sales and • Convenient access to maintain automated system, store associates
material orders: issue payments network information: self-manage can get access to order information
the organization’s pricing, and supporting documents from
Cilio Technologies, LLC | 200 South Executive Drive, Suite 101 | Brookfield, WI 53005 | ciliotech.com | info@ciliotech.com
5. their workstations, empowering sell them, manufacturers get more Without a centralized order
them to help customers on the insight to profile trading partners and distribution and management
spot and freeing up their time measure quality and performance. system, manufacturers may be
to help additional customers. This rich information provides unable to determine the ultimate
the basis for creating campaigns, source of a purchase. They know
In another example, a manufacturer promotions, and incentives programs which fabricators they are selling to,
was able to minimize its customer that push the right products through but they can’t tell where an order
service requirements when launching the most productive channels. originated. By centralizing orders in
a new product to more than 1,000 a portal environment, manufacturers
home center stores. Past experience In one case, a manufacturer get better visibility into the source
– without an automated order combined the Cilio Partners Portal of the order. With this information,
distribution and management tool – and incentives program to set a they are in a better position to offer
told this manufacturer that it would foundation for two key strategic meaningful pricing, discounts, and
need to ramp up its customer service initiatives: to increase its dealer base rebates to encourage particular sales
support by 20 to 30 people. But by and build brand loyalty. The company behaviors among their dealer base.
using a web-based portal solution, had many dealers in its network,
the company reduced its staffing but was unable to determine which A portal environment also allows
needs by more than 80 percent. were actively selling its products. retailers to gain control of pricing
The automated order flow and link By requiring dealers to register for across a large partner network
to accounting systems allowed the the incentives program and tracking by leveraging buying power
company to capture and distribute their sales, the company was able to negotiate consistent prices
hundreds of orders per week, tie to build a dealer base to grow on. across stores and locations.
materials directly to jobs, monitor The incentives program arms the
job progress, close out jobs, and manufacturer with a powerful dealer Raising the bar on
link all this information to their marketing tool that goes beyond
customer service
accounting system – all electronically. product samples and literature.
Retailers, on the other hand, can Both manufacturers and retailers
Achieving insight to manage
use automated order distribution can improve customer service with
market segments, partners, an automated order distribution
and management systems to
vendors, and customers monitor customer satisfaction and and management system. It allows
partner performance. Upon order retailers to “own” the interaction with
Like any company, manufacturers completion, they get automatic consumers, providing a convenient,
need to grow sales and increase notification, which they can use to familiar place for them to place their
revenues. But sales are largely initiate post-sales customer surveys. orders and get up-to-the minute
reliant on a network of distributors With this information, they can information about the order status.
and dealers, of which they may more quickly identify and mitigate
have little knowledge or control. customer concerns or quality issues Meanwhile, manufacturers can
Which are the most active or among partners and vendors. elevate their status to that of solution
productive dealers? What is the provider. An order distribution
return on investments with individual and management portal allows
retailers or distributors? How have
Improving pricing and them to deliver a whole solution
particular dealers responded to margins through that spans the life of the order,
campaigns? Which campaigns better management from origin through completion.
are the most successful? So they not only supply a product,
By gaining visibility on pricing but they also offer their partners
These questions can be difficult throughout the partner network, a turnkey solution that covers
to answer. Without an automated companies can optimize pricing everything from EDI transactions to
order distribution and management and improve margins. A portal warranty management to invoicing
system, order information may environment allows companies and payments, all while providing
be strewn across any point of to manage information about complete visibility of the order.
this supply chain, leaving little price and partner networks in a
visibility into order status or single system so they can gain An automated system also helps
performance of partners, marketing control of pricing and more simplify warranty and rebate
campaigns, and promotions. easily manage and track product management. With an electronic
cost variations across different record of orders, retailers and
With a history of information about locations or geographic areas. manufacturers can accurately verify
products sold and the partners that purchases and settle warranty
Cilio Technologies, LLC | 200 South Executive Drive, Suite 101 | Brookfield, WI 53005 | ciliotech.com | info@ciliotech.com
6. issues with customers more quickly. order information online at their Conclusion
Manufacturers can keep track of workstations, you not only improve
rebates offered to their network their work experience, you also As long as the economy continues to
partners. They also can issues improve the customer experience. struggle, retailers and manufacturers
purchase orders and invoices more in the home improvement and
accurately and quickly, saving Rise of cloud computing home building industries will feel
time spent to manually track the pressure to do more with
and calculate rebate pricing. less. The order distribution and
Meanwhile, as the adoption of
management process is one area
cloud computing reaches ever-
that can easily be transformed,
Now is the time broader levels, a fundamental shift
resulting in improved operational
in the way computing is managed
efficiency, better customer service,
is underway. In the past, the option
The combination of customer and increased sales. Many companies
to automate order distribution
readiness and technology availability in this industry have maintained
and management may not have
make now the perfect time to a cumbersome and complicated
existed for many companies.
consider an automated order order distribution and management
management and distribution process for lack of a better solution.
Though some off-the-shelf
solution. Companies that do But at a time when there is an
applications have this capability,
not respond to this opportunity “app” for everything, it is neither
they are often part of larger
will be at a disadvantage to necessary, nor prudent, to maintain
application suites that are expensive
their competitors who do. these old practices. New, web-based
and require significant technology
order distribution and management
investments. Companies either have
systems solve the logistics and
Shift in consumer behaviors: the had to make do by customizing a
communication challenges inherent
demand for more information product intended for some other
in today’s processes. Not only do
use, or they had to develop the
they offer a streamlined approach
capability internally, which means
Social media, mobile technologies, to logging and tracking orders
they would have to hire and
and high-speed internet have altered through the trading partner network,
educate a team of developers and
consumer expectations and technical but they also can be a powerful
turn IT’s attention to this effort for
abilities dramatically. We have platform for growing a business.
the better part of a year. In this
information available at our fingertips economy, few can afford that.
anywhere, any time of the day. From
a customer standpoint, this means Today, with advancements in cloud
they expect immediate information, technologies, companies can acquire
answers, and responses. Customers this capability much faster and more
don’t want to wait for your store cost-effectively. Cloud technologies
associates or your project manager allow companies to subscribe to
to track down the status of their a web-based application that is
order. They probably expect to see developed and maintained by a
the progress of their order from their third-party and hosted remotely.
own computers and smart phones. This model allows companies to
As this shift has occurred, businesses avoid large up-front investments
in all industries are under pressure in development, hardware and
to find new ways to provide the software, as well as ongoing upgrade
immediate service customers expect. and maintenance fees. And cloud
architectures have improved over
These behaviors and expectations the years so they address reliability,
translate into our work environments. security, and privacy concerns.
We now want and expect more With all these advancements,
information to help us make better companies can now have new
decisions. Retail employees, many technologies up and running in
of whom have been raised in weeks, rather than months.
the digital world, expect to have
immediate access to information
when customers ask about their
orders. By empowering these
employees with the ability to access
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