A Beneficial Supply-Chain Partnership
Supply-chain partnerships are evolving. End users demand single-source providers for their print and promotional needs, and technology often allows print providers to be that single source. Today, companies throughout the supply chain seek ways to partner-not just compete-with one another. The goal is to create a streamlined process that delivers solutions to end users and profits to partners. Golden Pacific Systems Inc. serves as an example of how businesses can benefit from supply-chain partnerships.
Before e-Quantum, a Reno, Nev.-based software supplier, offered office products as a category to be sold through its e-commerce system, the Petaluma, Calif.-based distributorship used a separate web-based interface to collect orders. Staff then manually re-entered the orders into their back-end software system. The integration with technology from e-Quantum and United Stationers Inc., Des Plaines, Ill., eliminated the extra step.
e-Quantum offers an e-commerce platform through its Quantum Net (Q-Net) software system. Q-Net allows distributors to sell products to end users through a custom web-based portal. When end users log onto the web site to place an order, they can choose from different categories of products, such as forms, promotional products, business cards and banners. The partnership between e-Quantum and United Stationers led to the addition of an office products category. When an end user buys office products from participating distributors, the order is sent to United Stationers, which drop ships products directly to the customer with the distributor's label.
As a result, Golden Pacific Systems saved time and reduced the cost of handling office product orders. "If we didn't have an internet solution, we would not [sell office products]," says Cal Popken, CFC, principal at Golden Pacific Systems. "I think it's a given that you must have an internet presence to be in that industry."
The primary advantage to selling office products through an e-commerce site is more business with minimal investment. Golden Pacific Systems has acquired new accounts and increased sales with existing customers by offering the technology. "The greatest value of this solution is that one can grow without adding personnel," Popken says.
Popken admits that there's a learning curve associated with selling office products: "The model that United Stationers has set up is that they have a market basket of probably 20 to 30 items that everybody uses. You might actually take a loss on those products in order to be competitive. The concept is that the customer will order many other items than those common 20 and that overall you should achieve a margin in the 25 to 30 percent range."
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