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to Realize Extended Market Reach |
ATLANTA, Sept. 18, 2000 - e-Markets require more than simply signing
up manufacturers, wholesalers, and suppliers. e-Markets must be integrated
and embedded into the key processes of its suppliers. Helping those
companies rewire the supply chain to seamlessly integrate channel processes�product
tracking, fulfillment, and payment�is the true challenge. hsupply
is tackling such a vision �tightly linking� with its suppliers. Premier
companies, including e-NITED Business Solutions, a division of United Stationers
(Nasdaq: USTR) and Sealy among others, have integrated with hsupply.com,
the leading e-services company for the hospitality supplies industry, to
realize the next-generation channel benefits of reduced costs, streamlined
processes and extended market reach.
e-Markets must balance their service to buyers and suppliers, offering different tools to meet each participant�s unique needs. For manufacturers, wholesalers, and distributors, the technologies behind the scenes are diverse and each supply chain has different components that must be assessed for automation and integration needs. The winning objective for an e-market is to review the supply chains of every supplier so it can reduce any inefficiencies and headaches in the process. �hsupply was easily able to integrate us into its marketplace so it can sell business products over the Internet,� said John Kennedy, president of e-NITED, the e-commerce arm of United Stationers, the leading U.S. wholesaler of business products such as office supplies, consumables, and paper goods. �hsupply is able to automatically upload product information from the e-NITED system so buyers are viewing real time data at all times.� Because hsupply takes title to the goods and makes its money from standard reseller margins, the e-market�s business model ties well with that of national manufacturers and wholesalers�all while extending the supplier�s market reach without any additional sales efforts. Because hsupply can deliver volume to its suppliers, it can bring lower costs to buyers and still be a profitable company by keeping consistent margins. Transaction and RFP/RFQ models put suppliers in bidding wars leaving little incentive for the supplier to participate. The more efficiencies hsupply can bring to the supplier, the more savings it can extend to the buyer. �It�s a balancing act. e-Markets have to be �tightly linked� to its suppliers to achieve a double benefit, which takes time and technology. e-Markets that claim hundreds of suppliers are �loosely linked�-not fully integrated,� said Dr. Ravi Kalakota, hsupply.com CEO and leading e-commerce expert. �hsupply has a 95 percent on time delivery rate that is only achievable through integration with best-in-class suppliers. And, those suppliers should be equally picky when selecting an e-market. Rewiring supply chains is complicated business. Don�t let anyone fool you.� Kalakota noted that hsupply.com has encountered widely varying levels of technology used by suppliers who have aligned with hsupply.com, including: (1) no IT infrastructure; (2) limited IT such as basic accounting software; (3) ERP systems; and (4) web to web (XML) interfacing. hsupply is developing integration models for suppliers at all of these levels. �We�ve actually noted a correlation between the type of company and what level of technology it typically has in place,� Kalakota said. �Local and regional distributors typically have little to no technology currently integrated into their operations. And as one would expect, national manufacturers, wholesalers and distributors have more complex systems in place.� �When we understood that hsupply provided one of its distributors with their first computer, that was enough for us to know their technology team is committed to an individual supplier�s integration needs,� said Leo Vogel, National Sales Manager, Contract Division of Sealy. �We�re excited to work with hsupply in this B2B commerce effort. hsupply makes us part of their buyers� customized procurement portfolios. They�re dedicated to learning and automating our specific supply chain. We expect to see real benefits from B2B e-commerce through hsupply.com.� Sealy, Inc. is the largest bedding manufacturer in North America and produces a diversified line of mattress and foundation products. e-NITED Business Solutions, the e-commerce arm of United Stationers, provides a full suite of services including integrated distribution, fulfillment, and value-added services for retailers, resellers and other commerce ventures. These suppliers add further depth to hsupply.com�s strategic supplier network and give customers access to thousands of new products that will be part of hsupply�s comprehensive selection of supplies including guest amenities, office and maintenance supplies, breakfast bar, alcohol, electronics, furniture and linens. About hsupply.com
About Sealy, Inc.
About United Stationers
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hsupply.com Amy Schulz 404-705-9450 x171 http://www.hsupply.com |