Samsung: E-smart Strategy

Business Challenges: When Samsung decided to set up a separate company for
its IT/telecom products last year, it had the problem of managing a huge
business with a handful of people. Thousands of dealers based all over the
country had to be monitored by a 24-member team.

IT approach: Being a technology company, Samsung was in a better position to
set up an online business for itself. Fortunately, its six main distributors are
all large IT companies such as Ingram Micro, Redington and Tech Pacific, which
are already web-enabled. These distributors, which are in turn linked to several
dealers, are also responsible for providing dealer information and updating the
database regularly. This e-enabled environment has helped Samsung set up an
online B2B model. The internal ERP has been extended to the supply chain and all
transactions are online, says national sales manager Vivek Prakash.

Benefits: Without an online operation, it would have been impossible for 24
people to manage transactions with such a huge dealer network. Moreover, the
company estimates a huge turnover of Rs 1105 crore this year, up from Rs 740
crore recorded last year. A number of routine inquiries and transactions which
do not need management decisions, can be tackled without any physical
interaction. This not only allows efficient resource allocation with low
manpower, but also cuts down inventory costs.