Next Step In The Evolution Of The Building Materials Industry: Connectivity And Collaboration

Room for improvement

Without even mentioning e-commerce, let's look at where there are opportunities in the above example for making it more accurate and efficient:

1. Key-in Accuracy. The more a transaction is manually entered, the more chances there are that a mistake can be made. In the above example, the builder enters the same information up to four times. One estimate we've seen states that some building material dealers have over 10% of sales coming back via returns simply due to shipping errors. If the information were entered correctly the first time and automatically passed from one link to the other in the supply chain, think of how much time and money that could save.

2. Key-in Frequency. The more often you key-in information, the more time-consuming the process. The above example doesn't even mention the time involved in cross referencing part numbers should the supplier not use the same part number as the builder. Imagine how much time could be saved for both the builder and supplier if the information had to be entered only once, and if part numbers could automatically be translated between builder, supplier, distributor, and manufacturer.

3. Transmission Times. 97% of all transactions in the building materials industry are conducted via phone and fax. In our example, there are four phone or fax transmissions for just this one order. If this is a special order, non-stock item, or if the window ends up being returned, the number of transmissions increases dramatically. What if this process were automatic?

4. Communication Gaps. The above example encompasses numerous software applications or hardware tools: the builder's quoting system, the builder's back-end system, the phone, the fax . . . not to mention the ones on the supplier's side (or the distributor's, or the manufacturer's). If these systems could share the same information, the three problems discussed above would be solved.

5. Office Hours. The builder in the above example may be preparing the quote on a Sunday evening. The supplier's office might not open until 9 a.m. on Monday. The supplier's response might not get back to the builder until 4 p.m. on Monday. By then, the builder has put in a full day's work and is ready to call it a night. What if you could continue doing business regardless of the time of day or day of the week?

The right e-tool for the right job

E-commerce inherently allows you to do business 24x7, 365. However, when selecting the right e-tool, examine closely the differences between models as they would impact how you conduct your business. For example, if you place an order on Sunday evening, would you be able to have your items delivered on Monday morning? If you are on site, would you be able to enter the order using a wireless accessory (such as a web-capable cell phone or a Palm Pilot?).

In addition, consider the following when making the move to online transactions. The ideal e-commerce solution would:

The Ideal e-Commerce Solution

Providing realistic e-commerce products and services

ChanneLinx has its roots in the building materials industry - so we are familiar with and respect the relationships and processes that exist today. Through its Trading Management Solution™, ChanneLinx provides an e-commerce strategy that seamlessly links each layer of the industry - from manufacturer to consumer - into an interoperable digital marketplace. Transaction information is shared with everyone who has a "need to know."

More than a "shopping cart," the eLinx™ Order Management System (a primary component of the Trading Management Solution) presents products and services for buying and selling over the Internet, extranet, or intranet. The system features sophisticated search capabilities, workflow management, and customer-specific pricing.

Another component of the system is proprietary WebDI technology. WebDI allows you to exchange electronic transactions with anyone with Internet access, no matter what software system they, or you, use. If your trading partner is not automated, they can log in to our service and, using only a browser, send documents in any format required.

By enabling this type of interaction, we can provide connectivity and collaboration not only between people within the supply chain, but also between systems and applications, making the next level of B2B integration possible.

For more information, contact:
Skip Miller
Executive Vice President
ChanneLinx, Inc.
Greenville, SC
www.channelinx.com

See Also:

Miller Discussion