Byran LiBrandi, Damon Childers, Heritage Foodservice Group, Swimming Against The Culture Tide And...
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Transcript of Byran LiBrandi, Damon Childers, Heritage Foodservice Group, Swimming Against The Culture Tide And...
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Omni-Channel TransformationSwimming against the Culture Tide and
Transforming an Entire Business
hybris Game Plan 2014 4 November 2014
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Omni-Channel Transformation
Introductions
Damon Childers EVP and President of eCommerce
Bryan LiBrandi SVP of Strategic Marketing
Omni-Channel Transformation
Leads
to Creation of
HeritageParts.com
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Omni-Channel Transformation
Founded in 1987
Heritage Foodservice Group is the largest distributor of replacement parts for commercial kitchen equipment
Rapid growth filled a market void; Heritage posted +20% year-over-year revenue increases for the first 25 years
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The Foodservice Industry
Single source replacement parts provider for more than 800 OEMs of cooking, refrigeration and dishwashing equipment
Serve widely diverse customer categories with over 1.2 million commercial kitchens in the U.S.
Omni-Channel Transformation
Independent Restaurants
Restaurant Chains
Hotels
Cruise Lines
Amusement Parks
Schools
Universities
Corporate Offices
Hospitals
Nursing Homes
Corrections Facilities
…and more
In most cases, the service tech “turning the wrench” is our customer
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We are B2B, but we are really retail:
+120 Customer Service Representatives in call centers in U.S. and Canada
Our parts specialists help customers identify the right part and make sure the part gets out the door
We serve customers one part at a time:
1.4 parts / order
$260 / transaction
Omni-Channel Transformation
Service Branch LocationsParts Warehouse LocationsFW HQ & Main Warehouse
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Change Management
On December 1st, 2011, Heritage Food Service Equipment was acquired by private equity, The Jordan Company
The previous rapid sales trend had flattened, but management believed there was much more room for growth
A new management team was put in place to take the company to its next level in growth and performance
Omni-Channel Transformation
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Our Strength and Our Weakness
Previous ownership believed introducing eCommerce would weaken Heritage’s value proposition of Best-in-Class Call Center
Personal service was the backbone and culture of the company
Sales, service, customer relationships and tribal knowledge of parts and equipment were wrapped up in our people’s experience and capabilities
Omni-Channel Transformation
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Competition Offered eCommerce
Competition had an 8 year head start bringing eCommerce to market
• Branding, Sales and Relationship Management
• SEO / SEM Marketing
• Advanced Product Content
Omni-Channel Transformation
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The Challenge
Even though we essentially created and innovated parts distribution in the foodservice industry –
We had become Marketing and Technology Laggards
Our business model and culture had become a barrier to future innovation
Omni-Channel Transformation
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Initial eCommerce Strategy
Our Original Premise:
• eCommerce customer was a separate, smaller (but growing) customer niche
different from Heritage’s traditional, call center customer
• Stand up ecommerce as a new independent brand
• We commenced market research as we began building an eCommerce site
Omni-Channel Transformation
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Built eCommerce from Scratch
No Content
Develop rich data for 120,000 SKUs –weights, dimensions, images, pricing, and
links to fits models and technical documentation
No Platform
Find the optimum eCommerce platform
Deficient Systems
Telephone, desktops and ERP all needed to be upgraded and integrated to bring
eCommerce online
Omni-Channel Transformation
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Market Research
Proved DifferentlyOur research indicated that the traditional, call center customers and eCommerce customers were One and the Same
Customers desired an omni-channel solution, enabling their purchase journey to provide solutions that fit the needs of the problem
50%-60% of online customers shop the part online, then call the call center to make the transaction
Insight: The customer wants to be confident they ordered the right part and it will ship on time as promised
Omni-Channel Transformation
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Why We Chose hybris as Our
eCommerce Platform?Relevant B2B Platform Experience and Functionality• Multiple experiences required for multiple classes of customer / user
• Product data more complex: multiple prices, multiple catalogs, product security
• Account management required: roles and permissions, cost centers & budgets, sales reports, credit management, sales quotations
• Order processes more complex: standing orders, credit checks, open to buy POs, approval processes.
Enterprise Scalability
Omni-Channel Solution
One Technology Stack for all Commerce
Viable Front-End Business Platform
Omni-Channel Transformation
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We Changed Direction• Create an omni-channel offering, call center and eCommerce, under one brand, Heritage Parts
• Focus on integrating eCommerceand call center to better serve customer journey
• Extend the hybriscockpit, with added customization, to the entire Customer Service floor
• Develop a higher level of integration between eCommerceand ERP than previously thought
• The change in direction delayed our eCommerce launch
Omni-Channel Transformation
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Project Blue Fire(Commercial Transformation Initiative)
Goal: Stand up omni-channel offering in 6 months (Jan – July 2014)
Rebrand Heritage Food Service Equipment to Heritage Parts
Upgrade telephone, desktop and ERP
Integrate hybris Platform, eCommerce and CSC, with Contact Center
Omni-Channel Transformation
• Communication (chat, text, email and call)
• ERP (transaction, shipping, customer data and product data)
• Marketing (Exact Target and SEM)
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Challenges
Customization to fit contact center processes and enable B2B transactions
• Ventured into unexplored territory
• Integration with Sage MAS500 ERP
• High level of customization resulted in time delays & cost increases
• Managing down growing bug list
Not internally equipped with appropriate resources
Maintaining communication between Heritage, Razorfish, and hybris Managed Services
Adoption by Customer Service team
Omni-Channel Transformation
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Accomplishments
Go Live: August 8
Completed rollout to customer service contact center
– Small team training for 6 weeks
– Adoption slow due to bugs and performance issues
Month 1 – eCommerce was 1% of net sales
Month 3 – Doubled #visitors
By EOY – eCommerce forecasted to reach 4% of net sales
Omni-Channel Transformation
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Next Steps
• Settle into the system
• For eCommerce and Cockpit, reduce bugs and improve performance speed and stability
• Advance eCommerce functionality to provide competitive advantage
• Aggressive search marketing to grow new prospect database
• Evolve our culture and business model from call center to omni-channel offering
Omni-Channel Transformation
Thank You
Heritage Parts5130 Executive BlvdFort Wayne, IN 46808
+1 800 458 5593HeritageParts.com