New technologies, capabilities, options, features, and even new high-tech — or simply highly eye-catching — brightly colored, transparent monitors: They all come and go so fast that every tech magazine article becomes obsolete before it even hits the newsstands. While writing this article, more than one person who was interviewed said that SM could publish an entire magazine each month on e-business options for distributors and still never hope to keep up with the myriad options that are out there. Still, it’s important for distributors to remain, if nothing else, aware of what’s available, what the trends are, and of what the competition might be scooping up at this exact moment. Not to say that distributors should be racing to their nearest e-commerce provider to spend whatever it takes to acquire every capability they’re peddling; however, awareness is important.

At this point, most distributors probably at least acknowledge that the Internet will become an inevitable part of their business’s future, yet few are jumping on the cost-heavy bandwagon. This approach has both positive and negative consequences. True, it’s important to move into the world of e-business with a strong idea of what you hope to accomplish, but if there is no movement, distributors are putting their businesses at risk, consultants say. This is not a fleeting trend — rather, it’s something that will continue to grow and will eventually become an indispensable business tool. Distributors must be prepared for that, industry experts contend. (For more insight and advice on the future of e-business, read the SM cover story “E-Commerce”.)

The seemingly skeptic observation is true, though, that it’s impossible to provide a comprehensive list of e-business software and service providers. With the expansive array of options available that get distributors up and able to perform transactions online and through their websites, there was absolutely no way to list them all. However, we’ve taken a sampling of some systems and software that in most cases cater to distributors, and many times to jan/san distributors specifically. This list is in no way designed to explain everything that is available, but rather to provide distributors with information that serves as a starting point in your research, and provides a look at some industry-specific providers that are out there.

And this list is only the tip of the iceberg. Distributors need to do their homework to figure out what is important to them and to their customers in an e-commerce or e-business provider. They need to decide what they want, then weigh costs, capabilities and features before settling on any plan. Distributors need to know what’s available that fits their specific business goals, or find a consultant or someone who can help make an educated decision.

Once distributors have a list of goals and considerations and a defined, concrete idea of what they’re looking for, they should approach a number of providers to ask how they’d accomplish those goals and then ask for price quotes. Caution, care, planning and thought will make finding the right direction for your business easiest.

DDi System Inc.
Newtown, Conn.
DDi System’s distributor management software, Fastweb, allows real-time links to existing DDi System data that allows customers to inquire about the status of orders, enter orders, review recent orders, build quotations, order based on bids they’re given, and review their account and invoices.

This is in contrast with most other systems and portals on the market where information isn’t “live.” Rather, it’s updated on a periodic basis, says DDi president Adam Waller.

“What’s unique is the true, real-time link to distributor’s back end database,” he says. When a customer places an order the information immediately appears on all desktops of pertinent people. The system tracks who responds and when, when a check is posted, etc.

Cost: $10,000 is the flat fee, which includes up to five hours of website design. Other services, such as marketing assistance, are extra.

Eclipse Inc.
Shelton, Conn.
The Eclipse Distribution Management System (DMS) enables distributors to become “commerce ready” by offering tools for creating and managing electronic product content and allowing customers to define their own product catalogs from input sources like the Internet, CD-Rom and EDI. Its Eclipse Messaging Server (EMS) processes any information that is input in real time.

“The strength of Eclipse is the level of integration we bring to the distributor,” says vice president of business development, Michael Honig. “We’re able to offer a solution that’s so tightly integrated that it makes for a better operating environment for the distributor.”

Cost: A user-driven fee structure based on the number of people logging on to the system. The Eclipse system must be in place, and there are numerous add-on capabilities the distributor can purchase.

ECI2/IOS2
Vienna, Va.
ECI2/IOS2’s Distributor Station e-commerce platform was designed in conjunction with Lagasse Bros., Inc., to serve the janitorial and paper distributors. One of the main benefits of the system is that it’s feature-rich, says Paula Jagemann, CEO and founder. All features are updated quarterly.

A large technology investment has been made on the customers’ behalf, Jagemann says. “Each person gets to use the system for a small amount each month.” Distributors can use a system that the company has invested $15 to $20 million in, Jagemann says. Continuing upgrades are unique to the industry, and the system allows distributors to add any product they wish to their catalog to mirror what customers would see on the ground.

Cost: The distributor pays a start-up fee and gets a three-page website. Then there’s a monthly subscription fee and a transaction fee that is a percentage of the order. The transaction fee can also be replaced with a flat transaction fee.

DDMS, Keller, Texas is a subsidiary of ECI2/IOS2. The company, at press time, had signed a letter of intent to acquire Maytech, San Antonio, Texas, another provider of e-commerce applications for the jan/san industry.

“With the ECI2/IOS2/Maytech solution for the jan/san industry, we’re going to offer a much more comprehensive, robust back end system than what’s out there right now,” says Dave Mayers, president of Maytech. “Our solution will be a total system.” The focus is on the benefits of integration.

Dealer Station DDMS edition is DDMS’s current solution. It’s designed for real-time business-to-business e-commerce. Features include custom pricing, quantity breaks, alternate and substitute item control, budget controls, billing terms and status checks for credit limits and past due accounts.

“What we’re confident will happen is the ECI2 companies will be able to invest dollars, people and systems into Maytech that will bring the Maytech platform to a higher level of performance,” says Scott Rosenzweig, vice president of marketing for ECI2.

Cost: The license and set-up fee for DDMS is now $5,000. Depending on the number of orders a company receives per month, the monthly hosting fee ranges from $200 to $1,075, plus a small per-order charge.

J&M Technologies Inc.
Youngstown, Ohio
J&M Technologies formulated its e-commerce strategy on the premise that the jan/san industry is dependent on the ability to exchange quotes on various products, and it built its system accordingly.

“What I’m offering is an online catalog and CD catalog of all the customers’ items so that their customers can go out there and see all the different products and see full descriptions,” says John Manzoian, president of J&M. J&M also has an agreement with Stanpak that allows the two systems to work together seamlessly. But, Manzoian says, they also can be used separately.

J&M’s extensive database is probably its most unique feature, according to Manzoian. There are 43,000 jan/san and paper items in the catalog, with two to 10 lines description and specs for each product.
Cost: Manzoian says the company’s price list is three pages long and includes a lot of variables. “There’s an upfront cost and a monthly fee with hosting,” he says. The fee includes charges for all database changes or additions. The fee averages about $230 month and requires a one-year contract.

JanCentral.com
JanCentral.com designs custom websites for their customers as well as customized electronic catalogs with customer-specific prices and links to product information. Distributors have access to janCentral content, and the company hosts and maintains the site.

“From a pricing perspective they don’t have to pay a transaction fee or a setup fee,” says janCentral president Josh Fruchter. “It’s comprehensive with online ordering, the website has the largest variety of design available. It’s highly customized and there are very attractive-looking templates.” End users are able to log on and access what they order on a regular basis at their leisure.

Fruchter says his solution offers a lot for the money.

Cost: The basic website package is $3,000 a year and it’s an extra $2,500 to add personalized ordering capability. So the complete package is $5,500 a year and includes a couple of free custom catalogs — additional catalogs are $75 each.

Networld Exchange
Bonsall, Calif.
Endorsed by the International Sanitary Supply Association (ISSA), Networld Exchange’s e-commerce solution allows distributors to get up and on the Web easily. Networld hosts and maintains the distributor’s information and website.

What’s out there are very basic systems, says John Schachat, president. “They can take an order and that’s about it. They also have trouble integrating it into the back office. We have a feature-rich system. We offer high security, wireless capabilities, and the ability to seamlessly tie in no matter what the system.”

With everything integrated, humans never have to touch the information and the instances of errors are reduced, says Schachat.

Cost: Schachat says the prices vary by the size of the distributor, as well as their capabilities and infrastructure already in place. There is a set-up fee, then a monthly fee, with no transaction fees.

Prophet 21
Yardley, Pa.
Prophet 21’s CommerceCenter solution focuses on the relationship between supplier and distributor as well as distributor/customer relationships. “There are lots of costs and errors between distributors and suppliers,” says Doug Levin, Prophet 21’s executive vice president. “There are mistakes, price discrepancies. We solve them by connecting them right into the supplier’s systems.”

Prophet 21’s network of suppliers are accessible to distributors with the system. “We give the distributor more access to information from the suppliers than they’ve ever had before. A lot have focused on the distributor and customer but not many have focused on the distributor and supplier.” Levin says this helps alleviate human error and leads to improved efficiency.

Cost: The solution, depending on customization and functionality, ranges from $3,000 up to $100,000 for a sophisticated solution. Levin says $25,000 to $45,000 is average.

Stanpak Systems Inc.
Suffield, Conn.
Stanpak’s system is designed to meet the needs of a jan/san distributor at an affordable price.

“These are channels of communication,” says Ed Mazer, president of Stanpak. “We look at the Internet as infrastructure — tools to assist our distributor in driving costs out of the relationship between the customer and distributor. They’re added services at a low cost.”

Customers have access to individualized ordering with their prices, and the catalogs are fully integrated. Everything is designed to work together smoothly to make the customer’s experience easiest, according to Mazer.

The system also serves to improve communications of salespeople who can interact and view activity over the Web. “It cuts down costs and improves service by making them more directly accessible,” says Mazer.

Cost: The hosting fee is less than $100 a month.

Step 1 Business Products
Newbury Park, Calif.
Step 1’s goal is to provide a cost-effective e-commerce system to its customers. “The costs are a third or less of what the competition in the market is charging,” says Gerry Human, vice president.

The type of information Step 1 incorporates is also beneficial to distributors, Human says.

“We’re trying to provide all the answers to all the questions that the customer would normally ask over the phone including detailed product specs. We’re trying to make the customer’s job as easy as possible by giving them everything they need over the website.” Customers have invoice histories, including every line item that you’ve ordered now or a year ago.

Cost: The set-up fee starts at $950, and the monthly fee starts at $50. There are no transaction fees.

Again, this is not designed to be a comprehensive list. This is a mere sampling of the options available and the types of e-commerce enablers that are eager to put your business on the Web. Researching will play a vital role in finding the best option or set of options for your business. Distributors, if they’re ready to get up and on the Net, should get on the Internet themselves right now and seek out potential providers. Define the commonalities and differences. Play an active role in finding what works best.

The software providers and e-business enablers on the market today really have a great number of similarities in their purposes and often their capabilities. There are variables, of course, as well as operational differences and variations in features and functions. Still, all share a group of core characteristics. And all e-commerce options have one thing in common — their goal is to help distributors move as painlessly as possible into the realm of e-business — the distributor’s job is to find which solution suits them best.

EPA Provides Kid-Safety Information
The U.S. Environmental Protection Agency (EPA) has developed four educational resources to help protect children from being poisoned by pesticides and household products.

“Learn About Chemicals Around Your House” provides parents and children information through a virtual tour.

The three other texts: “Read the Label First! Protect Your Kids;” “Ten Tips to Protect Children from Pesticide and Lead Poisonings Around the Home;” and “Pesticides and Child Safety” are available for viewing here.

Website Offers More News and Info
Pacific Steamex, Muskegon, Mich., a floor and carpet care equipment manufacturer, is offering company news, cleaning solutions, maintenance tips, industry links and other information to distributors online.




POSTED ON: 5/1/2001