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Dubarry
Limited
3.4
Selecting and Working with a Supplier
As part of the initial research into the eBusiness opportunity,
Dubarry spent some time assessing the supplier market attending
various trade shows, seminars and meeting directly with suppliers
in the market. Eventually the company whittled the list down to
three companies who pitched for the business.
What impressed us with the supplier we went with was that
they spent a lot of time getting to know us. They were very down
to earth, very practical and what really swung it for us was that
they came in and got to know our business. It was evident from an
early stage that wed met with someone who understood us. It
was also useful in that they were based in Galway so we could meet
up regularly that wasnt a major issue but it was useful,
says Dubarrys Head of IT Michael Flynn.
Dubarry eventually opted for Aró (www.aro.ie),
based in both Galway and Dublin.
A key issue for the company was that the system when it was eventually
built should be capable of being adapted and maintained in house.
One of the things we were absolutely adamant about was that
we didnt want a system delivered to us that would have high
maintenance costs afterwards. We didnt want to become a kind
of open chequebook. We wanted a system that was database driven
that could be handed over to us and we could put in new products.
This is critical to us because our business changes seasonally.
It would have been suicidal if we had bought in a fixed model in
that every time you wanted to change it would have been a major
deal. The inherent structure of the system is relatively fixed but
the content is changeable.
Dubarry also looked at various add-ons, which could be incorporated
onto the site visitor number logs, ticker tapes etc.
but in the end decided to avoid gimmicks and keep the down load
time as short as possible for potential visitors.
Once Dubarry had committed to the project and decided on a supplier,
the emphasis shifted to making it happen. One thing weve
learnt about after all of this, is that project management is absolutely
critical. Its easy for deadlines to shift, again because the
project wasnt necessarily seen as core to the business. But
Aró were very strong and managed projects to deadlines. We
are also pretty good about project management. We wanted to move
forward so they were pushing us and we were pushing them and it
was a very healthy relationship said Flynn.
3.5 The Web Site
The project team at Aró, realised from the outset that Dubarry
needed a 'smart' web-based product. They needed it to behave differently
depending on who was using it.
They recognised that the nature of Dubarrys channel relationships
was complex with the company making different footwear products
and ranges available in different territories. Furthermore attention
needed to be given to the fact that Dubarry was keen to respect
its relationships with its distributors, a key issue here was whether
to make online purchasing available to end users in markets where
the company had distributors.
The web site which was eventually created is organised primarily
according to geographic region. The first thing a visitor has to
do is to identify where theyre from. A lot of people
advised us against that and said you should let people in gently
and ask questions later. But we couldnt fulfil that commitment
to our distributors not to sell across their territories if we didnt
ask people up front where they were from. Having said that theres
nothing to stop you not telling us where youre from but you
still cant buy from a country which already has representation,
explains Walsh. This policy means that the commercial expectations
of sales to end users is realistically low. We dont
believe for a moment that were going to sell tens of thousands
of shoes through this. A lot of it is referral its
to refer genuine enquiries to our existing network. It would be
very easy to start trying to sell worldwide but our distributors
are the people who support us 365 days a year and if we become opportunistic
in terms of wanting to make a killing with double margins on a thousand
pair of shoes we wont have people supporting us.
Walsh is also cognisant of the fact that footwear is a difficult
item to buy online. Where an item of clothing, for example a sweatshirt,
might arrive slightly too big or too loose and the consumer would
not see that as a major problem, a pair of shoes need to be a perfect
fit. Say youre a Japanese consumer and you buy shoes
on the Internet and they dont fit, then you have to return
them and wait for the next pair to arrive. However it is a
very good mechanism for repeat business.
In
the first four weeks of the site going live, Dubarry sold about €6500
worth of goods, which was well within expectations. The previous web site
already featured a crude online sales section, whereby consumers used
a contact form and credit card numbers were taken manually over the phone.
Thats now all available online, including credit card checking.
As regards fulfilment the company was used to supplying product
in ones and twos both because of the previous Internet site but
also because such a service is offered to retailers around Ireland
for the domestic range of footwear. Its not a major
problem from a warehouse handling point of view, says Walsh.
While the company has committed to not selling into markets where
an existing distributor is in place it is planning to offer specific
items, which local distributors arent supplying. If
a distributor decides not to stock a product from the collection,
were not going to deprive someone in Australia, for example,
from buying it. This serves two purposes, it motivates the distributor
to provide full representation of the range and equally it allows
him to go to retailers and let them know that they wont be
listed on the web site as a stockist of a particular item. If the
retailer doesnt stock a product it isnt listed as a
supplier. This hasnt happened yet but its the next step.
Thats important to us because it gives us control. It means
we know what is happening in distribution. Theres a comfort
factor initially for distributors because were not cutting
across their territory but we will if they dont perform.
The business-to-business section of the site is password protected
and is available only to the 18 or so distributors of Dubarry. Once
into the section each distributor can see their back orders and
also the available stock. Ordering is done online and the distributor
must indicate the product required, the sizes required, the number
and the delivery date. Once an order is completed, a reference number
is supplied and an automatic email confirmation is sent. There are
several advantages to the new system particularly given the cumbersome
nature of the previous one. Up until recently we were taking
a computer print out of our stock availability, shrinking it and
faxing it out to our distributors every Friday. But the minute we
faxed it, it was out of date because another shoe got pulled off
the shelf. So we needed a facility were our distributors could come
in and find out exactly what was available, explains Flynn.
With the online system Dubarry has saved itself a substantial amount
of time and hassle in processing distributor orders, largely because
the system will not allow distributors to order product when it
is not available. We often found ourselves having to go back
and change orders with a distributor because they would ask for
a product that wouldnt even be in production. The system now
is capable of blanking out what isnt available at a particular
time.
Not every shoe is available in every size so our system blanks out
something thats not available so they cant order it.
There is a degree of quality control in this.
Pricing is not available on the site because pricing with distributors
is unique to each one. Equally because of the credit terms offered
to distributors, an online payment system hasnt yet been included.
However an imminent upgrade will include an order tracking facility
so that distributors can log on and find out the status of an order
already placed.
Selling the system to distributors required some effort. As Walsh
points out most are relatively small businesses with their own systems
in place and there was a degree of resistance to change. After piloting
the project with one distributor to iron out any kinks in the system,
Dubarry was relatively insistent that the other distributors shift
to the new online ordering model.
Theres a point at which you have to say, this is it
because otherwise it could be twelve months before they get it sorted
out. Initially it meant that they have to change their systems.
They were less strict with retailers but for distributors it wasnt
a major transition, more of a change of habit. They used to get
faxed a fifteen sheet order, sometimes ten of those sheets might
be blank. With all their distributors online, the new system saves
them time and hassle too.
The final aspect of the site is the brand building it enables Dubarry.
At the end of the day, we have built a brand that now has
achieved world wide recognition within a niche that is sailing.
Were finding, and had found in the original sites configuration,
that we were getting a lot of enquiries from places were we didnt
have representation. That used to be the case in the US, for example.
The vast majority of our enquiries are coming from the US. What
were doing now, is were forwarding them on to our US
distributor who is dealing with them, says Walsh. Of perhaps
greater importance is the interaction it allows with the customer
base. It is not just about selling product, its about
imparting a lot more information about our products. For example
we print quite expensive catalogues but not every consumer who buys
a pair of Dubarry shoes is going to get a copy of that. So when
someone goes into our web site theyll get a detailed spec
on the performance of the product they have. In addition to that,
for example, we have a shoe clinic for looking after the product.
Then theres news and events. Were involved in the Volvo
Ocean race and we let people know whats going on there and
at other events. Theres a racing calendar in it. Weve
linked in with one of the magazines and were using their race
calendar and every sailing event in the world is in the race calendar.
He goes on: What we want to do is build up a database of our
customers. Weve already built up a significant database --
we can categorise people in terms of queries on sponsorship, shoe
care, product preference theres a whole customer care
aspect to this too.
The site has been live since November 17th 2001. According to Walsh
the company could have deliberated for another six months about
whether it was ready but the decision was taken to go with as it
was. He believes that this was exactly right because even within
the first few weeks, a pattern began to emerge from the nature of
the queries and the web site is changing accordingly. For
example, people are asking us questions about stuff that is already
on the web site which theyre obviously not seeing. Thats
great information to get because we know we need to change that.
Theres a really significant lesson for anyone wanting
to get into this. Once you get a web site up there, it isnt
finished. Weve decided to allocate three to four hours every
week for the next two to three months to review it, to look at the
nature of enquiries and see how we can improve the service.
For visitors outside of Ireland, the emphasis is entirely on the
sailing and outdoor ranges. Those without local distributors can
buy directly but for the rest the site is primarily a technical
sailing/interactive information site with details on where to purchase.
Domestic visitors have access to the companys broader range
of footwear. The AV8 and Trix brands are available on the site but
these can also be accessed through their own domain names. Like
everything else with these brands packaging and promotion
for example the identities are entirely unique, similar to
other teenage brands. As for marketing, the web site address www.DubarryofIreland.com
has been incorporated into all promotional material press
releases, product placements, product reviews, ads and swing tickets.
There are also linkages from other sites for example, the
Volvo Ocean Race site, which, according to Walsh, is hugely successful,
albeit again in the sailing environment.
At the moment, the volume of enquiries to the web site is running
at about twenty five to thirty a day. They are almost exclusively
from overseas.
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