Diving into e.COmmefGe

By Alan Kosse Distribution Management Systems, Inc.

la\ONFUSION has many within the \-,building products industry wondering what their long-term e-commerce strategy should be. New opportunities in business-to-consumer (B2C), business-to-business ( B28), and online exchanges continue to pop up. But even the most lucrative are unproven-and still await large-scale buy-in. So what really lies ahead in this industry?

What should businesses do to get involved-safely? Should they take a wait-and-see approach? The answers vary for individual companies. But there are two major e-commerce models (B2C and B28) to consider implementing now so your business can ride this wave through the next decade.

Setting up a consumer- or retailoriented e-commerce marketplace is one approach. Popular B2C sites include Amazon.com and Buy.com. A few lumberyards also have Web sites allowing customers to make purchases. Each follows a consumer-oriented business model where buyer and seller may, or may not, know each other and payment is made in advance via credit card. Roofers for example, can now go to Amazon.com to buy a Hitachi roofing nailer and have it shipped anywhere in the U.S.

A few other retail sites. such as eBay, function as auctions, but to date have had little effect on building product distribution. As they expand, auctions and other bid-type systems may play a role in selling commodities such as lumber.

A Web-based B28 environment can be set up using different models, with each essentially allowing transactions to occur through an open account with established customers, either through a back-end office system or through an Internet ordering tool. Through an open account. an item can be ordered, shipped, billed and then paid for later.

Internet-enabled B2B ordering systems can be: o Provided as a function of a backend business management system;

. Customized modifications of a back-end management system;

. Implementations of an Internetbased third-party order entry system, such as BroadVision: o Provided by an exchange service infrastructure for multiple buyers and sellers to exchange transactions.

EntryNET, DMSi's online ordering and quoting tool, is an example of a standard Web-based order entry module provided as an extension of the back-end business system. Directly integrated within the normal business processes, it extends the order entry process to customers, allowing them to review customer-specific pricing, check availability, enter orders and monitor existing orders in real time.

Of the four opportunities, it's the simplest way to do business over the lnternel. It's the least expensive. easiest and quickest to implement and most flexible. Entering orders directly with back-end update means there's no data to re-key and infbrmation is provided in real time without a lag from inlermediate mapping steps.

Similar applications can be custombuilt into an individual back-end software system, but most likely at greater expense due to the cost of reinventing the wheel. All processes must be developed fiom scratch for the onetime use for that individual business. Costs to maintain the compatibility with new releases of the software add to the overall investment.

Some of the new Internet-based ecommerce business solutions on the market such as BroadVision are also an option. but can be quite expensive. Some cost over $l million dollars to start. Integrating them into your backend system is also expensive and time consuming. Maintaining compatibility with upgrades to front-end and back-end systems further complicate matters.

Another new B2B alternative now gaining prominence is the online exchange. These are much like business communities and provide the infrastructure for a many-to-many sales venue. Unlike the one-to-many concepts already discussed, exchanges provide a forum for multiple buyers and multiple sellers to conduct business. They can be a place to nurture existing one-to-one relationships, a way to meet new customers, or a more convenient way to conduct business transactions with existing customers.

Even the most lucrative are unproven-and still await large-scale buy-in.

Online exchanges include BuildNet, T.qlpx, e-Wood, Channelinx, Conduit, WWWood.net and others.

Each exchanse service includes an

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Hl-H0, H00-H0O: (1) Marilyn & Von "La Huda" Simpson, Robin & 10-year-old Trey Aranza, Tom Lynn & his steed Hoo-Hoo Silver, Frank Aranza at Hoo-Hoo International's 108th annual convention Sept. 9-14 in San Antonio, Tx. (2) Bob Johnson, Annette Rinell, Malcom Powell. (3) Marsha Lynn, Harvey Strack, Robin Powell. (4) Annmari & Jan-Evert Hermans. (5)

Ann & Gary Hansen. (6) Dan & Elouise Brown. (7) Jack Jacobson, John Bowles. (8) Incoming oresident Archie & Marion Brown. (9) Rod Garka. (10) J.C. & Sally Bachmeyer. (11) Keith Waddell, Dave Rinell, Bill Harley. (12) Janet Kellie, Wendy Thomas, Bryan Woolsey. (13) Maggi Waddell, Sandy Jacques. Annette Rinell, Dorise Johnson. (14) Greg & Lesley Hruby,

Rov Anderson. Maurice Hudon. (15) Steve & Coileen Rouse. {16) Ron Garka. (tz) aetn Thomas, Ma(i Cutler. (18) Joe Burgoyne lll, Tom O'Meara, Mary Moynihan, lst v.p. Tony Vecchiolla. (19) Vicki & Ron Paul. The {raternity has chaoters in the U.S., Canada, Australia, New Zealand, Malaysia and South Africa.

(More photos on next page) r Hardwoods o Hardwood veneer plywoods o Hardwood mouldings, common pine, T&T quotes o Softwood plywoods r Melamine panels o Standard & architectural mouldings r Butcher blocks r Bread boards o Cabinet hinge o Counter Tops o Solid Surface o Drawer slides . Wood putty o Glue & contact cement

HOO-HOO WHO'S WHO (continued from orevious page): (1) Dave & Stacey Jones. (2) Dave Trytko. (3) Carolyn & "Bea/'Breeden, Al Meier. (4) Eddie "E.2." Hunt, Debbie Paddock. (5) David & Lisa Siwek, Harold Smart. (6) Kim & Steve Allison. (7) Paul Beltgens, Bruce Woodrow, Cathie Willows. (8) Ed Gavotto, Dave Marteney. (9) Teeny & Nancy Johnston.

. Edge band tape I Veneers o Exotic Hardwoods o And new rope moulding products

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