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IdeaStar Staff

Work Smarter, Not Harder While Saving Money

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editor’s note: this article also appeared in the August issue of CBC Magazine.

By taking their business processes online, Manufactures are realizing that they are able to work smarter not harder and more cost efficiently as well. With the inception of the Web 2.0 revolution, technology provides a model that allows for businesses, customers, suppliers, and employees to interact in an instantaneous, cost efficient method. There are countless ways to do so from automated catalogs, e-commerce applications for online ordering, paperless-sales service, and sales rep communications, MSDS formatted for electronic distribution as PDFs, inventory control, ordering security and integration with back-end systems.

Let’s start with the online catalog. Have you really thought about what actually goes into producing the paper version? There is: employee time to create it, countless revisions to get it just right, printing costs, mailing costs and the wasted copies that never get mailed and just sit on a shelf. It’s an expensive and time consuming task and just when you think it’s done…it’s time to start the next issue. By creating an online catalog all of the tasks can be eliminated. Product information can be updated easily. Adding new inventory seamless and obsolete information deleted with a key stroke. And most importantly money is saved.

Another prominent shift is the ability order online via e-commerce solutions. The internet provides an efficient way to sell and market goods. There is a tremendous reduction in both personnel effort and time to fulfill an order when an e-commerce solution is employed. Not to mention that one’s business is never closed. Distributors, Reps, and consumers can order goods at any time of the day (or night). Another operational benefit of an online ordering system is the return on investment. While there will of course be the initial cost of building the application it quickly pays for itself. The system requires fewer staff members to maintain, less upkeep than a tradition brick and mortar facility, and marketing of the product can be done inexpensively and worldwide through Search Engine Optimization.

Utilizing Extranets and employee portals is yet another way manufacturers are communicating more and more. While travel costs are skyrocketing and business locations are expanding an Extranet is a perfect solution to maintain close contact. Reps can utilize the tool for field reporting. Supply Chain Managers can effectively monitor the flow and management can track all facets of the operation. Extranets can even be integrated ERP applications to further integrate all facets of the business.

The internet can also increase customer satisfaction. It provides a real time medium to keep the customer happy. Think about it, isn’t it frustrating when you want an answer, you call the business, and after going through all the prompts on the telephone you still wait on hold? That frustration can be alleviated by integrating chat software to you corporate Web site. It is a very effective method to stay in touch with the customer. Message Boards are an additional method to stay in touch. Customers can post reviews, comments and questions regarding the purchase or experience. Even negative commentaries are helpful as the moderator can address and correct the situation expediently.

Maintaining an online document library is another cost efficient way to store MSDS, company literature and brochures. Most Web sites today are built with a Content Management System or CMS. A CMS allows a site administrator, with little or no technical knowledge the ability to keep their site current. A CMS built with a document library allows for a place to store company information electronically with easy accessibility.

The internet is leveling the playing field. Small and large manufactures alike are realizing the potential to compete in a global economy. With technology and internet tools manufacturers are significantly lowering operational costs all while increasing the bottom line.

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