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Accelerating Sales Online - A Panel of Leading Sellers
- 1. © 2010 Ariba, Inc. All rights reserved. Accelerating Sales Online:A Panel of Leading Sellers SHI and B&H Photo Video Pro-Audio
- 2. © 2010 Ariba, Inc. All rights reserved. 2 Business Commerce Is an Evolutionary Process… Innovative Expand Collaborative Channel and Poise for Growth Proactive Create Processes, Infrastructure and Resources Collaborative Commerce Business Value Responsive AddressAdditional One-offRequests Reactive Comply with First Customer Request Transformation Enablement Phases of Seller Evolution
- 3. © 2010 Ariba, Inc. All rights reserved. 3 The Current State of Supplier Engagement Other 10% 10% Proactively engaged in collaborative business commerce 18% 18% Have at least 1 collaborative business commerce initiative 51% 51% 21% 21% Collaborative business commerce is a strategic initiative Note: Sample size = 350; Only one response allowed; 95% confidence level, with 5.25% margin of error.
- 4. © 2010 Ariba, Inc. All rights reserved. 4 Introductions SHI John DAquila, E-Commerce Operations Manager B&H Photo, Video & Pro Audio Jerry Zorek, Manager of Business Development
- 5. The Growth of SHI Global provider of IT Products, Services and Solutions 22-Year Anniversary in 2011! 1989 – regional software-only reseller 100% Organic Growth since 1989 Financially strong, stable and consistently profitable Every quarter, every year $ 3.8 Billion Revenue ($5B Imputed) in 2011 Over 30% growth vs 2010 revenue 1,700+ employees as of 7/2011 Most Experienced & Stable Support Field rep: 8+ years, average tenure Management team: 12+ years, tenure Same Ownership, past 22 years Largest Woman & Minority owned Business in N. America Our customers Initial focus on strategic and enterprise accounts in the US Expansion to public sector, international, midmarket SHI Confidential 5 © 2010 Ariba, Inc. All rights reserved.
- 7. SHI’s eCommerce Evolution SHI engaged early in PunchOut activity with Ariba SHI Owners are visionaries Developed eCommerce Website 15+ years ago Developing new tools and features 7 © 2010 Ariba, Inc. All rights reserved.
- 10. Supports both cXML PunchOut & OCI RoundtripLevel II PunchOut and Static CIF Catalogs supported 8 © 2010 Ariba, Inc. All rights reserved.
- 11. SHI’s Ariba Experience First PO from Ariba in 1999 Ariba for 2010 467998 transactions 59 Buying Organizations $441,563,207.86 in Rev #4 supplier overall 2011 11 new deployments/testing Transactions/Revenue up 20% 9 © 2010 Ariba, Inc. All rights reserved.
- 12. What I Preach Standardization Treat all customers like they are a Fortune 10 Say “Yes” and make it happen Work the details behind the scenes Ensure the catalog is priced and leveled correctly 10 © 2010 Ariba, Inc. All rights reserved.
- 13. Suggestions to Buyers Don’t be afraid Start with connectivity Take advantage of supplier investments Customized sites Website search capabilities New features Leave CIF for suppliers without sites 11 © 2010 Ariba, Inc. All rights reserved.
- 16. © 2010 Ariba, Inc. All rights reserved. 13 Introductions SHI John DAquila, E-Commerce Operations Manager B&H Photo, Video & Pro Audio Jerry Zorek, Manager of Business Development
- 17. © 2010 Ariba, Inc. All rights reserved. 14 Who is B&H Photo, Video, & Pro Audio Our company World-class provider of creative technology and AV products Professional and consumer photo, audio and video as well as audio/visual presentation, computers, surveillance, binoculars & scopes, film & media, lighting & studio, portable & home entertainment, underwater equipment and much more. Serving professional, corporate, education and government sectors World-class customer service Founded 1973 Our business Creative technology An unfamiliar category for many corporate, education, and government buyers Price volatility Large % of electronic content can lead to significant decreases in MSRP Visit: www.bhphotovideo.com
- 20. Ariba a core aspect of our E-Commerce strategy 15 © 2010 Ariba, Inc. All rights reserved.
- 21. © 2010 Ariba, Inc. All rights reserved. 16 Why E-Commerce? Adapt to changing buying habits Capture additional share in accounts Provide accurate pricing Drive $40K+ online sales per day
- 22. © 2010 Ariba, Inc. All rights reserved. 17 Our E-Commerce Evolution in Corporate/ Government/ EDU Segments E-Commerce journey began with a request from a large corporate customer 500-item CIF catalog Static pricing Strategic investment beginning in 2008 Move from IT ownership to marketing initiative Strategic cataloging From static catalog to dynamic PunchOut with full catalog From fax orders to electronic
- 23. © 2010 Ariba, Inc. All rights reserved. 18 Our E-Commerce Capabilities Ariba Ready validated Platinum seller More than 10 years’ experience with Ariba Network Over 25 customers supported via Ariba today Member of Ariba Seller Steering Committee $10M+ in annual transactions 25%+ annual growth in Ariba channel 300,000 + items offered via PunchOut
- 24. © 2010 Ariba, Inc. All rights reserved. 19 Our Ariba Strategy: Enabling PunchOut Why PunchOut? Accurate pricing Full catalog Expedient shopping experience What should you expect from your vendor? 300,000+ item catalog, 1600+ brands, most in stock and ready to ship Pricing updated every 30 minutes Customer enablement in 3 weeks or less Win-Win success story Large buyer initially managed catalog with a 500-item CIF catalog updated annually Pricing became outdated usually resulting in higher prices Discontinued items were in catalog and new items were not Update to 40,000-item CIF catalog resent monthly which saved the buyer hundreds of thousands of dollars Now we provide a 300K+ item catalog via PunchOut, updated multiple times daily
- 25. © 2010 Ariba, Inc. All rights reserved. 20 Our Ariba Strategy: Helping Buyers Address Rogue Spend The problem: spend occurring outside of preferred channels Lack of awareness Non-compliance Need it fast Typical customer approach Categorizing creative technology Who owns this category of spend – audio visual? IT? Push an existing vendor to provide Efficiency/economies of scale issues Do nothing Our approach Identify an owner Drive visibility through e-Procurement Get what you need fast and easy Rogue Spend – Most Categories Rogue Spend – Creative Technology
- 30. © 2010 Ariba, Inc. All rights reserved. 23 Additional Resources Webinar Series: Business Commerce Experts Kevin Govin, MarkMaster Chip Graham, EBSCO Cara Balint, Insight Robert Calvert, Hewlett Packard Brady Seiberlich, National Business Furniture Upcoming event: RockTenn, OfficeMax, Insight November 17, 2011` For more information, please contact us at programs_info@ariba.com
- 31. Thank You ** Ariba Confidential© 2011 Ariba, Inc. All rights reserved. 24