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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