Retailers link stores with VSAT technology

ELATIVE newcomers to satellite technology, home and building products retai lers are push ing the VSAT networks to new levels ofcreative use.

Home Depot started transmitting data by satellite network early in 1989, adding a video network later in the year. They lease time on two offsite hubs.

The video network is used for training, product rollout and management communication, Rob Hollam, director of business television, at Home Depot, explains. "The quarterly Breakfast With Bemie & Arthur featuring chairman Bernie Marcus and president Arthur Blank is viewed by Home Depot employees across the nation," he says.

When HomeBase (formerly Home Club) signed on for a data and video network last summer, it foresaw replacing the analog AT&T lines to its 75 locations with satellite links that would provide superior point of sale, credit authorization, inventory control and store administration support. Rather than attempting to staff and manage a private network hub, they opted to rely on a shared hub facility, a common decision for retailers of l0O stores or less. Their network is now fully operational via Hughes Network Systems' Los Angeles, Ca., Shared Hub.

HomeBase data center director Jim Orr explains the network's evolution from simple replacement technology to a strategic marketing tool: "When we began our study of VSATs, we looked at three specific aspects ofthe technology: data, voice and video. The data communications capabilities alone justified the entire network for us. Receiving, inventory control, point of sale, etc. were going to be more cost effective by satellite."

At first the chain planned to use video product knowledge presentations in a videoconference format so that every sales manager, representative and clerk would getthe same training while benefiting from questions through live Q & A and immediate feedback. However, response to the programming was so positive that presentations have be- come weekly features, along with quarterly management presentations from executives in a live, interactive format. Orr's latest challenge is to develop a proprietary tv network for the company. This will broadcast new product information and home repairand maintenance instruction to employees each Tuesday.

Story at a Glance

Ways home centerchains use satellite technology for electronic data communication, voice and video transmission benefits in customer service, employee training, interaction between headquarters and units. . independents join co-op communication satellite network.

Lowe's contracted with Hughes for a satellite network last December. The chain's 310 sites across the southeast and eastern states justified a private network hub at North Wilkesboro, N.C., headquarters. In addition to supporting interactive data transmissions, their network transmits video broadcasts of training, product introductions and corporate communications.

CO-HOSTS

Hardware Wholesalers lnc.'s video store meeting film their 100th monthly program.

The ability to handle video as well as voice and data is unique to satellite networking. Lowe's vice president of information services Frank Dooley emphasizes the importance of everyone receiving the same message at the same time: "An example is the 'Welcome to Lowe's' segment directed to new employees. Our ceo Leonard Herring speaks on the company's history, business philosophy and teamwork. We run it on a monitor at headquarters so everyone can see it. It's nice because most people never get to meet the ceo or even find out what he looks like."

Improved customer service is a major benefit of the satellite network.

"With our old, dial-up credit authorization, we were looking at an average of 1.7 minutes to get a response. Going to an online credit system with the satellite has cut that to 4-5 seconds. You'd be surprised at the difference that makes. Usually, the customer is not aware we're doing it," Dooley explains.

This feature also saves money by avoiding bad debts with more consistent credit authorization. "We run everything through now," he says. "With the old dial-up system, we'd just let it go if the delays got too long. All in all, we view the network as a positive step. It gives us the ability to layer data, video, voice and otherthings like security alarms on a single network serving hundreds of stores. We're looking forward to bringing the entire company online later this year."

Builder's Square recently acquired a chainwide VSAT network to replace a leased-line communications network. This will operate via Hughes' Minneapolis, Mn., Shared Hub facility to link 145 warehouse home improvement stores with San Antonio, Tx., headquarters. The network will handle credit verification, inventory control and video conferencing among the sites.

Cotter& Co., Chicago, Il., has more than I "300 True Value dealer members on its communications satellite network. It provides in-store music, audio mes- saging, electronic data communications and direct video transmission including training videos.