Feature

TECHNOLOGY: the route to efficiency

Priorities may differ, but the importance of a well-functioning online set-up has become a no brainer for independent dealers – and technology solutions providers are here to help

E-commerce has, quite simply, become non-negotiable – it’s how consumers want to shop. And the whole process has to be smooth.

But there’s more to it than just the front-end customer purchasing experience. Technology software is increasingly becoming an indispensable enabler in these challenging times of soaring inflation, under-pressure margins and logistics obstacles.

OPI’s Heike Dieckmann spoke to a selection of software providers to find out the current status quo, the most pressing issues and what lies ahead.

Special Issue VENDOR SPECIAL

BRIAN BOWERFIND, PRESIDENT, OFFICE PRODUCTS & CONTRACT FURNITURE, ECI SOLUTIONS

The challenges facing businesses have been somewhat relentless. From the COVID-19 pandemic to rising prices and global supply chain instability, the need for innovation has never been greater.

Over the past year, we have continued to see independent dealers figuring out ways to move their companies forward – by adding new revenue streams but also by bolstering their online presence, having realised just how important this is to end consumers. These end consumers will switch suppliers until they find one that is able to deliver the level of service they expect. Five-star customer service, 24/7 is that expectation.

TECHNOLOGY ROI

The decision to invest in technology is always a difficult one. However, we have found that more and more dealers are realising the benefits and embracing fully integrated business management solutions, both from an efficiency as well as a cost-saving viewpoint.

There are different perspectives to address. The first is from a dealership angle. With hybrid working seemingly here to stay, dealers need to have the right technology in place to support their own employees with their day-to-day work, maintain communication channels and boost productivity across the business.

Our products are designed to provide them with the tools required to minimise unnecessary admin and integrate all departments. In that context, cloud-based solutions can provide greater insight into the business and identify the processes that are working and the ones which aren’t. This is especially important for those looking to branch out into new markets or scale up.

Secondly, it’s about end customer needs and expectations. To keep pace with the industry’s giants, it’s vital for independents to make their websites dynamic by running regular offers and targeted marketing campaigns. ECI products are designed to help these SMEs easily create and execute such campaigns, promote specific products and services, manage customer engagements and even assess and review buyer behaviour.

LOGISTICS EXCELLENCE

This industry is known for quick delivery, with businesses often able to pick, pack and ship items within a matter of hours. For stocking dealers, knowing how much inventory they hold and the exact stock turnover rate is essential, and deploying a system that has full integration with the major wholesalers has been a key aim for our customers.

With this functionality, teams can be confident stock will automatically be replenished as and when necessary to ensure end consumers aren’t left disappointed. In the past, this was a full-time job for someone; it was also susceptible to human error.

Find out more: www.ecisolutions.com

Efficiency and how to achieve it has become key for independents. Last year saw many dealers trying to operate with fewer people, as employees were out as a result of COVID-19. They had to be more structured and SSI facilitated that.

Our core focus has been – and continues to be – on helping dealers achieve the most efficient order flow. One place where dealers can control some of their costs is in their internal operations.

DYNAMIC PRICING

Price changes are happening so fast that it is taking up more time to keep costs correct and margins good. We were already completely integrated with Item411 so that dealers can change prices dynamically while protecting their margins. We added additional cost management features to the software and conducted seminars to help them do a better job managing this part of their operation.

There’s also more interest in reducing delivery costs and we have the tools to enable this. We recently included further features for managing delivery fees and our long-standing partnership with Apjax gives dealers very economical and effective options for route management and proof-of-delivery which are tightly integrated with the software.

On the furniture side, we’ve been adding several project management features. And we are always enhancing our web store to keep dealers competitive online.

For most dealers in the US, web store orders account for the majority of all purchases, and the percentage continues to climb.

One place where dealers can control some of their costs is in their internal operations

In Canada, online purchasing may not be the majority yet, but the trajectory is upwards too. SEO and punchouts have seen tremendous growth over the past year.

An interesting phenomenon we’ve noticed is that more dealers have closed their retail operations, going commercial-only this year.

Find out more: www.ssiop.com

ANDY BALLARD, DIRECTOR OF SALES, GOPD

From our dealers’ perspective, the theme of the past year has been ‘flexibility’. This is because all their customers are unique and looking for different things in terms of how they’re approached, the products they want to buy, and the support they need.

And as these buyers are now working from a variety of environments, dealers must be flexible in not only their product offering, but how items are presented, their pricing, and how they interact with customers.

Technology is a vital tool in helping a potential buyer become a customer. GOPD breaks the journey down into four steps:

• Find the dealer: potential buyers have to know the dealer has an e-commerce solution and know how to get there to shop. Appealing and frequent marketing is essential to driving them to the web store. • Find the product: buyers need to find the products they want to purchase. Search tools and suggested buys, customised to the

type of buyer, are important. Once the item is found, it should be easy to see further details on that product, irrespective of whether it’s supplied by wholesalers like S.P. Richards and Essendant or a different source. • Price competitiveness: GOPD has a wide variety of pricing tools, and dealers can choose those that best accomplish their offering goals per customer, including our

Chain Store Match or Beat module. • Communication and automation: once an order is placed, keep the customer updated on what’s happening.

ON- AND OFFLINE INTEGRATION

We’ve launched an intensive campaign to enhance awareness that dealers need to change their business strategy from face-to-face interaction to selling through online processes. It doesn’t mean face-to-face is dead, but it has to become integrated with e-commerce. The same goes for customer service, back office functions and accounting.

Many of our dealers adopt these necessities with great enthusiasm.

As the online climate continues to evolve, digital marketing has become a significant component of selling. Our marketing partnership with Sortis Digital Marketing has seen tremendous results for dealers and helped them adapt to rapid changes. In the past, they often depended on others to do their marketing, but have then wound up frustrated by generic, cookie-cutter strategies.

Sortis has worked with GOPD dealers for years and understands how to tailor individualised marketing strategies to their specific needs instead of offering a one-size-fits-all, canned approach. By utilising tools such as email marketing, SEO, social media and direct links back to dealers’ e-commerce sites, GOPD and Sortis are helping them reach their unique goals.

All the various tools on offer don’t just benefit the end customers, of course – they aid dealers’ sales teams as well. This is because they can draw on all the information at their fingertips through a feature called Selling Suites: product availability and pricing information from multiple sources, product specifics, customers’ histories, and the ability to build quotes and orders.

E-commerce will only accelerate further so it’s high time independents got comfortable selling online and interacting with their customers in a new way.

Find out more: www.gopd.com

SONNY ARORA, OPERATIONS MANAGER, DEALER COMMANDER

It’s been a perfect storm for the past two years, but it’s the challenges that make small businesses stronger and allow them to think outside the box. I believe the dealer community will bounce back to its best levels within the next 12-18 months.

There are definitely two segments in this community – the wait-and-see contingent and the progressives. In the latter group, I’ve seen a major change in approach in terms of taking control of their marketing to customers – this has long been a tug of war between dealers and wholesalers.

In fact, we regard those dealers that want to be in charge of their business as our target audience. There are many challenges and current macroeconomic influences only exacerbate these.

Since we launched our software, we have always looked at margin management as

There are definitely two segments in this community – the wait-and-see contingent and the progressives

the most important function for a dealer and a big focus has been on how purchasing is managed as an approach to enhancing margins after the sale.

The best-kept secret is the buying groups in this context – they offer a way to add margin

to the bottom line. Buying groups are also in a perfect position to change the content game and make dealers truly independent.

They don’t do enough in that area in my view, maybe because of too many hands in content syndication. It’s a big task, but once an effort is made, it’s just upkeep and management. Imagine a completely synced effort with one mission – so much could be done.

Dealer Commander’s tools remove third-party dependency and, with COVID-19 in mind, we have created several changes in our system to accommodate issues such as touchless delivery. We’ve created Delivery Commander, for instance, our digital delivery software. A lot of the enhancements we make are a result of dealer feedback as, clearly, they are the ones with their ear to the ground.

E-COMMERCE MIGRATION

Overall, dealers need to focus on increasing their online presence and order-taking. 50% of the US dealer community still accepts orders on paper from customers.

Many have redirected websites or choose not to show prices because of fears competitors will steal their customers. It’s utterly insane and these dealers will not survive. Competition is healthy.

I’m proud to say all our clients embrace technology and grow with it. One of our dealer partners now receives 90% of orders online – that’s the way to go and will be the catalyst to catapulting independents to the next level. E-commerce should be the 100% focus – now more than ever before.

Find out more: www.dealercommander.com

For more comments from these software companies, including topics such as Amazon, working with the wholesalers and new product developments, see our Xtra content in the September issue of opi.net

JENNIFER RAE STINE, PRESIDENT, FORTUNE WEB MARKETING

I believe there has been a shift in certain areas of the independent community as far as technology is concerned, especially where dealers are taking advantage of platforms at their disposal.

We have seen an increase in those moving to HubSpot, for example, which serves as an inbound marketing hub and CRM to advanced email marketing software platforms.

THE PENNY HAS DROPPED

I’m delighted mobile and the vital importance of it has at long last become standard – thank goodness. I was getting slightly frustrated there. For those that have never engaged in SEO, meanwhile, this has also steadily crept up the agenda.

However, it is now extremely difficult to be successful for dealers which have not diversified their portfolio or focused on growth in specific categories. The days of trying to rank for ‘office supplies’ are over.

Social media is another big topic that continues to be underrated by independents. Many still do not take advantage of the power of relationship building and key ad strategies they should, especially on LinkedIn. Instagram is also, finally, being used more in this industry.

The mindset of “my clients are not on social media” is completely misguided. They are there all the time – professionally and personally. Of course, it takes time to run an effective social media campaign, but just being engaged on a daily basis is a start.

At Fortune Web, we’ve recently added a video production arm to our business. Video is another component which is paramount to a successful digital strategy and we are trying to get those behind the curve on board faster.

Overall, for dealers that have been reluctant to move into new technologies or platforms, I urge them to start with the programs the wholesalers have developed. They are really making strides every year and the barrier to entry is low – when it comes to cost, learning curve and even what you might need to manage on your own. There are, quite literally, programs available for everyone.

Find out more: www.fortunewebmarketing.com