E-markets: new economy
According to a report entitled `E-Markets - Colonising the Emerging Digital Economy,' the new economics of the Internet are enabling progressive and imaginative organisations to prosper, whilst those around them become caught in ever decreasing circles, due to an unwillingness or inability to change.
The report, from the Butler Group (www.butlergroup.com), says the stark reality is that organisations must adapt to avoid failure.
Mike Thompson, the firm's director of research, said that the impact of e-markets and the evolution of a new economy finds many organisations in a situation where their very existence is threatened.
"Some still refuse to accept this situation and continue to pursue the same strategy," he explained, adding that, amongst those with sufficient intelligence to recognise and understand what is happening, there is panic and fear, as the stark realisation dawns that they must rapidly create value and sustain some form of competitive advantage in order to keep their heads above the rising water.
"As the rationale of organisations is to generate profit, success demands an understanding of the threats and opportunities posed by the new economic models," he added.
So where does this leave the IT reseller channel? Heavily squeezed on the profit front, that's where. As I've reported throughout the last year, the Internet has changed the face of retailing, and nowhere more so has this been prevalent but in the computer reseller channel.
... and the delivery channel needs to change as well
The computer reseller shift from `bricks and mortar' outlets to the Web is one thing, but what about the logistics of distribution for the online computer reseller?
According to Iain Davie, an IT industry veteran, and CEO of Web Fulfilment Limited, a new Internet order fulfilment firm set up to cater to service e-tailer's needs in the UK, the distribution industry is set for a shakeup too in the months ahead.
As a fulfilment expert, Davie argues that traditional distribution routes simply do not work for Internet purchases, as they were not set up with the Web in mind and therefore cannot be easily integrated with online systems.
"Traditional distribution channels do not 'talk back' to the customer and need to be much quicker to respond. This can only be achieved through online communication direct from the fulfilment house to the customer via the originating Web site," he explained.
Davie argues that too many Web sites are built without the consideration of integrated Web fulfilment, and therefore rely on traditional means to provide the answers. This, he warns, simply does not work online.
Against this backdrop, Davie said that the e-commerce retail industry must give more to its online customers if it is to provide them with a viable alternative to the traditional `bricks and mortar' distribution channel.
He went on to say that he believes that effective customer service can only be achieved by having fulfilment systems fully integrated with the Web sites.
"Improved customer service is required to inspire more confidence in the Internet. Customers need to feel that they are important to the retailer and that if they have a query about their order someone will respond to them," he said.
"Web purchasers need to be able to see exactly what is happening during the order process - this is why a combined online tracking and stock management system is so important. It enables the customer to see the stock availability and to be told the delivery date before ordering, and after ordering to be able to track their purchase up to the moment it arrives at its designated destination," he added.
As well as more rapid fulfilment of customer orders, Davie predicts that couriers must expand their delivery schedules beyond the traditional Monday-to-Friday, 9am-to-5pm cycle that they have used for decades.
These times are inconvenient for most people ordering products on the Web, as most users are at work during these times.
Changes to these cycles won't happen overnight and, as a result, Davie said that he is working with courier firms to look at alternative means of delivery such as delivering to a customer's workplace or local train station.
With adjustments to the distribution chain like this, he said, the Internet "will come into its own" against traditional clicks and mortar sales.
A2000 Distribution named as Hitachi master distributor
A2000 Distribution, the Pocket PC specialist, has been awarded master distributor status by Hitachi (www.hitachi-eu.com), the Japanese electronics giant.
A2000 has been carrying Hitachi products, including the ePlate PDA since its release, and claims to have been very successful in promoting them to the corporate market.
John Kemp, the distributor's managing director, said that, as a master distributor, A2000 will benefit from specialist Hitachi training and a close working relationship between the two companies.
Hitachi, meanwhile, says it will look to A2000 for feedback on its products and will in turn keep the UK distributor informed of all new product developments.
First resellers register as xbidit.com goes live
A new reseller Web site called Xbidit has opened, offering resellers access to auctions of IT hardware from vendors and other interested third parties.
Headed by five well-known industry professionals - Alistair Handyside, George Fletcher, Simon Aldous, David Lewis, and Clive Hudson - the Closed Business Exchange (CBE) is aiming to provide a service previously unavailable to resellers.
Alistair Handyside, the firm's managing director, said that, because the site is offering a live auction, taking place over a number of minutes rather than days, much of the uncertainty seen when participating in other online auctions has been removed.
"Resellers are informed immediately, within the browser, whether their bid is successful or whether they have been out-bid by another participant," he explained.
Hudson went on to say that Xbidit's interactive live bidding gives resellers the unique opportunity to name their own prices for equipment.
This, combined with the site's continuously updated range of products from top manufacturers, backed up with speedy logistics, is a service that will benefit resellers tremendously.
Butler Group, http://www.butlergroup.com;
WFL, 0044-1483-303233 (GB), http://www.web-fulfilment.com;
A2000 Distribution, 0044-1483-852000 (GB), http://www.pocketpc.uk.com;
Xbidit.com, 0044-0700-492348 (GB), http://www.xbidit.com