Summary
¦ IT is a key enabler of delivering good customer service.
¦ Web sales software is increasing in importance.
¦ Ten-25 has upgraded alerting functions on its software.
¦ Kerridge’s new K8 Mobile allows managers to access systems from smartphones.
¦ Solarsoft’s ERP system is to be launched as a browser-based product.
The power of software to transform the way business is done and information is managed is without question and, with the UK economy being so challenging in the past two years, the need for merchants to get more out of their software has increased.
Progressive Solutions held two customer events at Runcorn and Reading recently and undertook interviews with delegates to gauge opinions on its products and services, as well as on industry matters in general.
Many made reference to the “hard times” and the impact on their business, with some reporting decreases in sales of up to 25%, ‘kerbed’ investment, employee redundancies and loss of customers.
The main strategies were therefore all about surviving the downturn and gearing up for the period after the recession.
Without exception, when asked to describe their strategic aims and vision for their business, timber merchants depicted a scenario that suggests that customer service is the overriding consideration and seen as the differentiator in terms of strategy.
IT was cited as a key enabler of providing first class customer service, with software functionality and the software’s ability to fit the business being overriding criteria applied by the bisTrack customers at both first and second purchase. Price was seen as less important, and also less important than ease of use and growth potential of the system.
Online trading platform
E-commerce is one tool for enhancing service and attracting more business for merchants – as indicated by United Merchants plc’s (Unimer) fresh acquisition of a 10% equity stake in online trading business eBuildingSupplies.
Unimer said it wanted to offer members new opportunities and provide innovative routes to market. It said electronic trading was a clear growth area for its members.
The deal will see Unimer members using eBuildingSupplies online trading platform – software it has developed itself. Merchants using it will not have to install anything – a special link on their own websites will give customers access to the platform.
eBuildingSupplies director Robin Somerville said online trading was happening throughout other industries and would also increase within the building materials sector.
“It’s still quite new to the merchant sector,” said Mr Somerville. “There aren’t massive sales volumes now but it’s useful and there is potential for a rapid switch, just as was seen in the insurance industry when online price comparison was launched.”
The tie-up with Unimer will see the launch of a new price comparison feature for the group’s members in the weeks to come. This allows customers of participating members to access a link on the merchant’s website, which goes through to a private area on the eBuildingSupplies website.
“But from the customer’s point of view it appears they have not left the merchant’s website,” he said.
The merchant’s prices will appear, with comparison prices for other merchants nearby. This basically formalises and simplifies something which happens in the real world – customers telephone around to find the cheapest quote. “The customer will be able to choose between them based on price and service options,” said Mr Somerville.
A feedback rating will be added to allow customers to rate the service.
“It gives people a new sales route if they do not have an online trading presence,” said Mr Somerville, adding that merchants using online trading were getting higher prices than over the trade counter.
He said benefits also included access to national online marketing that would not otherwise be affordable even to large regional and local merchants; instant online trading for merchants’ own websites with full images, descriptions and categories at little or no effort, as well complementing merchants’ existing IT systems.
Web shops open for business
Ten-25 will be launching its own web shop trading platform for timber merchants at the start of next year.
Ian Oldrey, Ten-25 director, said the concept of web shops was one that split its customers.
“Some are very keen to be moving ahead with e-commerce, while others are a bit reticent. A lot of customers are concerned about how unique every order is, while others are very open to the web’s ability to trade at any time of the day or night. So many people these days are turning to the web for things, so why should timber be any different?”
Ten-25 is preparing to release a new version of its UniTrade software in November. The upgrade focuses on the useability of the system and reporting.
It has also upgraded alerting capabilities, via an add-on feature for existing customers. This improves the speed and ability of senior managers to authorise purchase orders of a certain value.
Previously, authorisations had to be done internally, but now it is web based.
“Whoever is doing the authorisation can now do it with a mobile phone from home,” said Mr Oldrey. “It’s a useful function, particularly for a lot of our larger customers.”
Other existing functions of the alerting service include the generation of reports and automated emailing of users and customers with information such as credit stops, products out of stock and low margin orders.
Kerridge Commercial Systems (KCS) has launched K8 Mobile – a product which gives users of the K8 merchant, wholesale, distribution and warehousing system access to specially developed applications from their smartphones. Designed to give an anytime, anywhere facility, the software is handset independent and operates from a Blackberry, iPhone or any other similar smartphone.
Mobile information access
Applications cover both operator level tools and management information content, giving access to product, customer and delivery information. Managers can see KPIs and access other on-screen information.
“Initial feedback has been very positive and we’re confident that K8 Mobile will revolutionise how K8 is used across our customer base,” said KCS product director David Liddle.
He said KCS wanted to continue the development process for additional applications.
“Accessing key tools such as daily sales information, customer specific spend, stock and pricing is vital no matter where we are. Whether travelling or about to arrive at an appointment, the ability to gain vital and accurate information quickly via our mobile phone helps us drive business.”
Meanwhile, Kerridge says it is seeing an increasing trend of existing and new customers opting for Oracle database technology.
The scaleable database – Oracle Database 11g – helps bring K8’s operational and business support processes together into one integrated environment while allowing K8 to be more easily connected with other business systems.
New Kerridge customer Howdens Joinery uses K8 with Oracle for its depot system.
Solarsoft Business Systems’ Web Sales software has been available for five years but the company recently upgraded the system to include the ability to hold customers’ credit card details while staying payment card industry-compliant. The next versions of he system will include integration with social media sites.
Solarsoft marketing manager Anthea Ross said interest in Web Sales has risen as customers look to sell to existing customers 24/7, while also opening the door to new customers.
“Those companies who are using Web Sales are finding that staff are spending less time on sales administration and more time on value-added tasks such as up-selling or giving customers better service,” she said.
Meanwhile Solarsoft’s standard ERP system, xVP, will soon be launched as a browser-based product, which will allow companies to use it in a SaaS (software as a service) model and which makes it suitable for SMEs, as well as larger organisations.
Information dashboards
Solarsoft said many of its merchant customers were investing in management information dashboards, which extend existing Enterprise Resource Planning (ERP) systems with key facts and trends.
“These dashboards are a cost-effective option for many SME merchants to understand business critical information without spending critical hours per month going through management reports,” said Ms Ross.
