Samsung

The challenge

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 located all over the country had to be monitored by
a 15-member team. Besides keeping track of its sales and business transactions,
the company wanted to create a user-friendly image for its end consumers as
well.

E-solution

Being a technology company, Samsung was in a better position to set up an
online business for itself. Fortunately, its six main distributors were all
large IT companies such as Ingram Micro, Redington and Tech Pacific, which were
already Web-enabled. These distributors, which are in turn linked to several
dealers, were also responsible for providing dealer info and regularly updating
the database. This e-enabled environment has helped Samsung set up a completely
online B2B model. The internal SAP ERP has been extended to the supply chain and
all transactions including payments and orders are made online. Additionally,
the company has also created sites to provide useful information and services to
its end consumers. While buildurpc.com provides info that one needs before
buying a PC, an HDD service on samsungindia.com allows consumers to avail
warranty services for Samsung’s hard disks.

Benefits

Without an online operation, it would have been impossible for 15 people to
manage transactions with such a huge dealer network. Moreover, the company
estimates a turnover of Rs 800 crore this year, an incredible Rs 53 crore per
person! 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 the cost of
inventories drastically. For instance, Samsung can now manage its HDD business
with just three days of stock. And additional value added services for consumers
certainly help build the brand equity.

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