|
|
|||||||||||||||
|
|||||||||||||||
|
Scanning,
Electronic Orders and the Back Office –
As the gift industry moves into this new millennium we find ourselves with scanning and electronic orders as the hot new topics. Scanning offers a myriad of performance improvements for the average gift rep. Electronic orders and invoicing allows the opportunity of a paperless office to become a reality. With all of these benefits at our fingertips, they are unfortunately similar to the situation found by the railroads of the 19th century. There is no standardization. Without standardization, this can prove to be catastrophic to rep agencies.
The dynamics and economics of the technology revolution for the reps are changing. In the 20th century, the gift rep was trying to improve accuracy and professionalism. Even in the 21st century, the vast majority of manufacturers still accept paper orders via email and USPS. Some of the more technologically skilled manufacturers are aware of the costs involved in processing hundreds of paper orders. Industry estimates suggest that the average paper order costs the company approximately $79 to process.
Scanning companies are lauding the attributes of their respective systems to hundreds of manufacturers. The concept of receiving orders electronically from the field is quite appealing. It reduces error and increases the productivity of the office support staff, not to mention the reduced cost of order forms, fax paper, postage and the like. As more and more manufacturers come on board they will discover the underlying issue: independent sales reps carry more than one line!
Most of these scanning solutions are proprietary and will not “talk” to one another. The average sales agency represents some manufacturers that have entered relationships with different scanning solutions partners. The result: some have two, even three back office systems while their associate reps that often are not technologically literate are juggling multiple scanners and mastering none!
Some manufacturers, at the suggestion of their scanning partner, have issued ultimatums to independent reps; “Drop the line with conflicting scanning or we will be forced to find alternate representation.” Many have even dictated that the agency change their back office system to conform to the back office system offered by the scanning partner. This is great for the scanning partner because it provides a new opportunity to perhaps “steal” a manufacturer from a competitor and to garner the entire sales force. Unfortunately, it is the rep agency that is largely “un-represented” in this technology struggle.
The very nature of independent sales reps, particularly manufacturers reps, is that they do business with many manufacturers simultaneously. It is inherent in the philosophy of the multi-line rep to offer their customer that broad cross-section of goods that would be difficult to find anywhere else. Independent reps, as such, should be respected for their business decisions and protected from the dictates of suppliers relative to how to run their business.
There are, without question, numerous benefits for the manufacturer and the increase in the size and speed of order writing in the showroom is a good thing for the sales agency. These points are quite positive and should be taken advantage of but a successful rep group should not be forced to change the way they do business.
It is important to remember that the trend to force rep groups into a specific scanning or back office solution has just begun. Most manufacturers do not want to change the systems that successful reps use to run their business. Rep groups really don’t want to change a back office system that works for them. Nor do they want to even begin to entertain multiple back office systems. They do not like multiple scanning systems and they are tired of the multiple costs for disparate systems.
The answer is a simple one. At the bottom of everything is a file, a simple little file that is generated by the scanner and is either sent to the manufacturer or some online location from the rep agency. Likewise, any professional order writing system has the ability to send orders as “files” today. Good back office systems have been able to generate these files for years, thus eliminating the need for proprietary or multiple back office systems. The key is to align yourself with those technology partners that are independent – that will work with all of your lines – not just some of them.
As simple and elegant as this solution may seem, it has not been suggested by many of the scanning solutions people. Why? Because they lose income and control! Ask your technology partner if they have proprietary relationships with manufacturers. Do they have the ability to accept all of your lines? Can they send electronic orders to any of your lines? Can the send HTML orders as well as files?
The real benefits of scanning are accuracy, professionalism, speed, and increased average orders. The rep firm should be able to choose a scanning solution that benefits the entire business – not just a portion of the business.
The manufacturer receives the real benefits of electronic orders. The manufacturer reaps the order processing benefits. For the rep firm to truly benefit, the manufacturer should be sending electronic invoice data to the rep firm’s back office system. Can your back office system accept electronic invoices in various formats?
The call for standards has been voiced as an issue for many years. As the dynamics and economics of the industry change, the average rep firm needs to align themselves with technology partners that will work with all of their lines for scanning, order writing and back office. Until standards are widely in use, the short-term strategy is to align your business with the technology partner that is truly independent.
References
Commissioner
Software, Ltd. Web: http://www.commissionersoftware.com/
WOW
Software 18415
Melissa Circle Eden
Prairie, MN 55347 Phone
952 918-0522 Fax 952 983-0619 Email: wow@wow-software.com |
|||||||||||||||