e-Business Case Studies
Minister's Forerword
Introduction
Credits
Acknowledgements
Viking Components
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PROJECT OBJECTIVE
ECOMMERCE ENABLED SUPPLY CHAIN FOCUSSING ON FULFILMENT
Viking Components in a Global designer, manufacturer and distributor of technology products designed to enhance the value of IT systems. Viking’s current product lines include computer memory, flash memory for portable digital devices and modems. The company is focused heavily on the distribution/ reseller and the original equipment manufacturer (OEM) markets. According to DataQuest, Viking is the fourth largest global third party memory manufacturer in the world.
Corporate headquarters are in Rancho Santa Margarita, California with European headquarters in Dublin, Ireland. Both facilities have tightly integrated design, engineering, manufacturing, testing, sales, service and shipping operations. Viking products are sold world-wide for use in desktop systems, UNIX workstations, digital cameras and hand-held PCs, cellular phones, laptops, pagers and other such devices. Products are distributed through a network of distributors, resellers and retailers to corporate and individual end users in over 50 countries.
Business Case for eCommerce Infrastructure Project
During 1998 Viking Components Europe (VCE) introduced its Approved Reseller Programme (ARP) to Sweden. The purpose of this programme was to lock in the largest resellers with full support from the Swedish distributors. One of the reasons that Viking embarked on the ARP programme at that time was that some of its competitors were targeting traditional Viking resellers directly without going through the local distributors. Viking believes that distributors add significant value to the business process in terms of market knowledge, marketing activities and the ability to supply numerous products from one source. However, VCE also believes that they add significant costs and delays to the supply chain that could reasonably be eliminated. The ARP Programme was designed to extend support down the channel to the Reseller, while maintaining channel integrity.
The basis of the ARP programme is that VCE would continue to use the same channel but increase the benefits to the reseller, i.e. the customer’s customer, by offering extras such as:
- 1% rebate on purchases
- Marketing materials and promotions
- Training
- Free Phone Numbers
- Technical Support
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Viking has developed a "Configurator" over the last number of years. This configurator is a database which allows the user to identify exactly what memory is required for any particular computer, printer, digital camera or other electronic device. Due to the complexity of the subject area, this is an extremely important tool for any sales person selling memory as an upgrade for any device.
VCE proposed to use eCommerce to make the ARP an exceptional programme that delivers excellent results for the reseller, the distributor and Viking.
eBusiness Solution
VCE designed an eCommerce solution based around a Viking home page with access rights for each ARP and EDI/FTP communication between the distributor and Viking that enables ARPs to:
- Order product using a customised version of the configurator have it supplied from either the distributor or be invoiced by distributor and supplied direct from Viking.
- See Virtual inventory in the channel
- Get allocation of product from Viking
- Place high priority orders
- Receive order acknowledgments
- Track order status (via DHL or UPS)
- Request technical support
- Participate in an ARP discussion group
- Receive regular technical and sales training online using the Viking Online Training System
- Receive regular marketing documentation
- Request Cross Ship Return Material Authorisations
- Provide details of inventory and sell through information
- Receive new product information on the day of release, reducing time-to-market
- Receive pricing information (adjusted for local currency)
- Receive market reports on the memory industry.
Who will benefit from this eCommerce Infrastructure Development?
This project was focussed on the top resellers initially. However, it also links to distributors who play an important role in its success.
"Thanks to the support received through this programme, Viking’s eBusiness offerings are amongst the most sophisticated in our market. Our customers throughout Europe are also benefiting from our acquired knowledge and expertise. I believe that through this initiative, a large percentage of Viking’s business will be conducted electronically.
E-Business is the future and Viking is now prepared for it".
Don O’Callaghan,
Vice President and Managing Director,
Viking Components Europe.Viking Components
Lake Drive 3200
City West Business Campus
Dublin 24Tel: + 353 1 4660090
www.vikingcomponents.com
martin@viking.ie