E-commerce continues to be a pivotal topic in the manufacturing world – distributors caught on to e-commerce comparatively quickly, as the demand for streamlined processing became a core competency. But in the manufacturing world, where product complexity is many times greater than the items delivered over traditional distribution channels, the acquisition and fulfillment of complete, complex, and high-dollar products becomes much more complicated.
Manufacturing companies that successfully leverage e-commerce as part of their overall go-to-market strategy do so in a variety of ways and seek to achieve a variety of benefits. That said, I thought it would be beneficial to cover some of the ways in which manufacturing companies are successfully leveraging e-commerce solutions to the benefit of their bottom line and their strategic initiatives.
Expanding Your Spare Parts Business
As a consultant, I once noticed an interesting trend when it came to system configuration – customers routinely spend an inordinate amount of time configuring their ERP system around their finished goods. And then they go live, and we all realize that the vast majority of their orders are not for finished goods but rather for spare parts. In many organizations, these orders amount to a significant revenue stream. Why is that? The margins achieved by service parts, replacement parts, spare parts, and related value streams are generally much higher than they are for finished goods. When a customer is in a bind, their machines are down, and product is not getting out the door, the demand for simple components goes way up, and as a result, the asking price similarly climbs.
To that end, e-commerce systems can streamline the process for finding the right part you need and expediting the fulfillment process, getting the order in the queue, without the need to chase down a customer service rep.
Expedited Warranty Processing
The flip side of the spare parts business is the world of warranty. In these cases, customers need some form of service part to address an issue covered by the original product’s warranty, often at no cost. Deploying your warranty parts to your e-commerce system allows your customer base to get a hold of the parts they need as soon as possible and helps cut down your own warranty costs by reducing the degree of human interaction. The net result is a better overall service offering, without the increase in overhead.
Finished Goods Acquisition
While our discussion has thus far centered on the acquisition of component parts, many manufacturers have extended their e-commerce offerings to include finished goods. I’ve seen customers readily deploy their highly standardized and stocked finished good products to their e-commerce systems, and in doing so, provide another avenue for customer service and order taking. This can be of great value to organizations that cater to both a B2B and B2C community. It can also service the lead-time needs of existing customers – in cases where companies are short-staffed on the order entry / customer service front, an e-commerce connection allows your customer base to get “first in line” when placing an order. In many industries, such a priority can shorten order-to-deliver lead times, which can be of great value to a given customer.
Customer Portal
The ability to stay on top of your orders has become of increasing importance to customers in B2B relationships. This includes but is not limited to orders that were placed online. When a customer places an order, they often expect online status information, to be able to track their orders through the fulfillment process. This can be important both for quick-turn items, where delivery timing is of the essence, or for large, long lead time items, where status at various stages becomes critical to know. E-commerce solutions provide a natural way to provide customers with updates to order status, whether the order was placed online or through a customer service representative. This allows you to provide an easy means of constant status to your customers while saving your own team.
Dealer Interaction
One important customer channel for many manufacturers is the dealer-distributor network. Dealers and distributors are a strange blend of outside sales and end customers, and their needs overlap the two. A goal for many organizations is to make their dealer-distributor network as much an extension of their own organization as possible. How is this done? Through seamless communication, often fostered by an e-commerce-enabled dealer portal. Dealer portals often combine elements of traditional e-commerce with elements that betray the intimacy that dealers need and expect from their manufacturing partners. Are you looking to better service the needs of your dealers and distributors? Give e-commerce a try.
24/7 Customer Service
As you might have noticed, many of the above circumstances have referenced difficulties in getting your order placed. This is surprisingly common, and I am forever shocked and surprised by the challenges many companies have in finding reliable customer service and order processing resources. Customer service is a difficult business, and many workers who might have posted for these roles have found other options. That said, the time it takes for your customers to get their orders into your system and “into the queue” can be a deal maker or a deal breaker.
Providing an easy means to enter orders and get them immediately into the fulfillment cycle can be an enticing option. Also, in our increasingly remote world, where employees routinely look to get tasks done at odd hours, the ability to provide 24/7 customer service can be of great value to many organizations. When your customer is in a pinch due to an emergency or machine downtime, the ability to immediately get in front of you can be of immense value.
Separating the Best from the Rest
As you can see, e-commerce has grown in breadth and depth over the years to cover an increasing number of avenues and solve a variety of problems for customers. But now that we know what a world-class e-commerce solution can do for you, the question remains: what are the best practices for evaluating a world-class e-commerce solution? In our webinar on October 25th, 2023, our friends at Parttrap can help you see what you need to look for when evaluating an e-commerce solution.
On August 29th, EstesGroup heads to Texas for one of the most important events in the distribution industry. Visit us in booths 6 and 7 at P21WWUG CONNECT 2022 in San Antonio August 29th – August 31st! We are proud to be the Platinum Sponsor for this year’s show!
What is P21WWUG CONNECT?
Organized by the Prophet 21 World Wide Users Group (P21WWUG), CONNECT is an annual gathering of Epicor Prophet 21 users from across the globe. Members of the distribution community head to exciting cities (i.e. Atlanta ’21 or San Antonio ’22) to meet, collaborate, and learn more about the Prophet 21 application. Attendees interact and learn from other members of the P21WWUG community, from Epicor consultants and product managers, and from third-party solution providers, like DCKAP, our partner for a pre-show charity walk that will benefit children in need. With multiple days of educational sessions, the event offers excellent opportunities for Prophet 21 users to expand their use of the Epicor P21 application, and better leverage P21 ERP to serve the needs of their organizations.
With multiple days of educational sessions, the event offers excellent opportunities for Prophet 21 users to expand their use of the Epicor P21 application, and better leverage P21 ERP to serve the needs of their organizations. Visit us at CONNECT booths 6 and 7 to learn more about application hosting, cloud migrations, infrastructure as a service (IaaS), IT support and services for companies in the distribution industry, application optimization through partnership with an Epicor Prophet 21 expert, and more.
Who is P21WWUG CONNECT for?
The P21WWUG CONNECT conference is designed to address the needs of a broad base of the P21 community. Attendees of the event range from business owners and executives to managers and functional specialists, in areas such as purchasing, accounting, sales, inventory and warehouse management. This event helps both the members of the P21 community that use the data from the P21 application to make executive decisions, and the folks in the trenches, using the P21 application to make their companies function.
Who will I meet at P21WWUG CONNECT?
Your peers and colleagues, to begin with. End users, power users, local experts, IT admins — individuals who’ve worked with the Epicor P21 system for years and have learned its inner workings, and have solved countless problems in and through its use. They bring their collective knowledge to the P21WWUG CONNECT event, to share their hard-earned lessons with others. Beyond the user community, an extensive vendor area allows you to interact with providers of integrated solutions that enable companies to extend their P21 applications by bringing it into contact with customer and suppliers, and to automate processes internally, increasing efficiency and effectiveness.
What will I learn from the Prophet 21 World Wide Users Group?
It takes a lot to make your business succeed. To address your needs, P21WWUG CONNECT offers a range of networking opportunities, keynote speakers, educational sessions, roundtable discussions, and workshops, that address your current challenges and the challenges of the future.
That said, what you learn depends on what you’re looking for.
Maybe you are an inventory control manager, already well-versed in the P21 application, but in search of more information about inventory management, stocking levels, cycle counting, or units of measure.
Or you could be a power user, responsible for data management and updates, and wish to better understand using excel in conjunction with P21, improving your skills in reports, queries, financial statements, data extraction, SSRS or Crystal Reports.
You might be a developer, looking to learn more about Dynachange, business rules, data streams or business process automation. You might be here trying to extend your P21 ecosystem, interesting in talking with P21 third-party vendors, or attending sessions to learn more about shipping integrations, credit card processing, or ACH integrations.
Or you might be an uber-techie, concerned with database administration cloud capabilities, cybersecurity or middleware APIs. Many users simply come trying to better understand P21’s Web UI, and whether they are ready to take the leap.
Are you thinking of attending P21WWUG CONNECT? Are you trying to sharpen your business acumen, to make better decisions in rapidly fluctuating times? Perhaps you are trying to better understand continuous improvement in the distribution industry, or you wish to learn how other distributors are dealing with supply chain issues. Your concern might be sales strategy, or mastering the challenges of recruiting, retainment, and employee development. If you’re a business leader, CONNECT might be the place to help you use Prophet 21 ERP to take your business into the future.
Chances are that if you have questions about the distribution industry, EstesGroup ERP and IT experts at P21WWUG CONNECT 2022 will provide the answers. The event will offer sessions, users, vendors, and experts to help you find the answers that you are looking for. Visit us at booth 6 and 7 this August!
Where and when is P21WWUG CONNECT 2022?
The Prophet 21 World Wide User Group will be hosting CONNECT 2022 from August 29th to August 31st at the JW Marriott San Antonio Hill Country Resort & Spa.
EstesGroup is hosting a pre-event Charity Walk with our partner DCKAP. DCKAP simplifies commerce for distributors. Get better results faster with DCKAP’s simple, yet powerful, product suite.
Any other considerations concerning this distribution industry event?
To attend P21WWUG CONNECT, you need to be a member of the P21 World Wide User Group. Are you a member already? If not, check out the P21WWUG website for more info.
ESTESGROUP & RIPEN ANNOUNCE DIGITAL COMMERCE PARTNERSHIP
EstesGroup has announced a partnership with RIPEN, a leading digital commerce experience agency. The strategic alliance allows the two tech leaders to join forces and offer best-in-class Prophet 21 and e-commerce consulting, solutions, and managed services.
We are excited to partner with RIPEN. RIPEN’s robust and flexible P21 Commerce platform, extensive B2B experience, and superior customer service make the agency a leader in the industry, and a great partner for EstesGroup.
Brandon Haave
SVP, Partner,EstesGroup
For 18 years, RIPEN has consistently delivered digital commerce transformations. Our experience enables us to distill technical requirements and strategic goals to recommend creative solutions for digital growth and success. This partnership is a step towards our vision of providing unified support for ERP and ecommerce platforms.
Michael Tudor
CEO,RIPEN
About RIPEN
RIPEN develops creative and technical strategies to build highly persuasive digital commerce experiences that convert, scale, and thrive. RIPEN P21 Commerce integrates Epicor Prophet 21 with Magento 2 to offer an optimized B2B experience and robust set of features.
Build and launch 2-3x faster on RIPEN P21 Commerce, the only natively integrated Prophet 21 e-commerce accelerator platform.
Are you looking for a better Prophet 21 e-commerce experience?
Schedule a consultation to discuss your requirements and digital goals today.
Prophet 21 hosting creates the perfect private cloud for your distribution business. As the premiere ERP hosting company for Epicor Kinetic and Epicor Prophet 21, EstesGroup creates the infrastructure you need, saving you from the headaches caused by a poor deployment strategy.
Please chat with us now to schedule a free Prophet 21 deployment consultation today.
What is Electronic Data Interchange (EDI)? In a much simpler five words or less definition, it means “data in, data out”. EDI is a toolset that interacts with an Enterprise Resource Planning (ERP) business software system that takes data coming into theEDI system, processes that data in the ERP, and sends that data back out to the originator (like a customer). You would think that a process which can be explained in only four words would be pretty simple, right? And it can be, if the proper care and attention is given to the EDI’s initial setup and further EDI strategy.
If a customer’s purchase order sent via EDI is being processed and has an incorrect date, or is completely missing a cell’s data, a simple mapping adjustment can be made to correct these sorts of issues. How can you ensure that your customer’s purchase orders are processed into your system correctly, if that attention to detail is not done? How can you be sure the pricing on your sales orders and the invoices that are generated are correct if your price lists are not correctly setup in your ERP system?
The EDI strategy and process is a digital mirror of how your system is currently setup and will reflect your strengths and faults back to your customers and suppliers. Think of EDI as a linked chain and your business is a boat being pulled along by a truck, which represents your customers or suppliers.
If all the links are solid, that truck will pull that boat forever always getting to the desired destination, but if there is a broken link, the chain will start to fail and eventually break, allowing that truck to continue driving, but it leaves the boat behind stranded in the middle of nowhere. To avoid being stranded and left behind, make sure that your chain is strong and durable by taking time setting up the ERP data properly, the EDI mapping, and running many tests before going live with customers. With the proper care and attention to your EDI solution, it will not matter how large that boat or truck gets. Your chain will not break; it can handle the pressure. Now ask yourself this, is your chain strong and durable enough? Or could there be some broken links you may or may not even know about?
Still not clear on the answer to the question “What is electronic data interchange?” Ask us anything, we would love to chat.
How many ways can you find to help your customers want to do business with your organization? It does not always come to down to the lowest price but how easy your organization provides them with the tools or application such as “ B2B eCommerce” or as some know it as “Storefront” Finding new customers or keeping an existing customer takes effort from sales, customer service, manufacturing\distributing, shipping and lastly your finance department. B2B eCommerce\Storefront\Customer Portal\ can pave the way…you can start out gradual …Give your customers access to all of their orders – open or closed, checking on the status of that open order to see if their items have shipped or maybe they want to see status of their invoices, or request a quote or a RMA – Return Material Authorization. They can do this 24×7 without your customer service department being available. What about having your customers look up the status of products such as availability or price? What if they could see details about that product that they would normally call customer service or maybe their sales rep? Next step is to make the product available for your customers to place an order…how easy can that be?
There are many ecommerce platforms out there that say they can do this…but can they really provide all of the information in real time to an ERP system? Check out Epicor Storefront powered by Parttrap or Parttrap Business One.
Have questions? Get a free 30 minute assessment of your current website and ecommerce solution: