Watford Electronics Broadband technology enables Watford Electronics to increase sales and benefit from major operational efficiencies Best practice in: Broadband Sector: Retail (IT) Size of firm: 98 employees Location: Luton Website: www.watford.co.uk www.savastore.com PC manufacturer and retailer, Watford Electronics, supplies customers throughout the country with PCs, IT accessories, hardware, software, networks, licences and consumables and with the advent of eBusiness has expanded its range to include electrical and entertainment products. Objectives The company's sales are through its eBusiness website, call centres in Luton and Birmingham and through its retail outlet in Luton. Founded in 1972 by Nazir Jessa, Watford Electronics' move to eBusiness was recognised by the Directors to be an essential development in order to continue its organic growth in the electronic retailing sector. An effective broadband solution was a fundamental requirement for their eBusiness operation, which needed to be online 24 hours a day, seven days a week. Solution Watford Electronics has two NTL cable broadband connections at the Luton head office. In addition it has a Virtual Private Network (VPN) between the Luton Head Office and the Birmingham sales office. This is based on the company's broadband connections and provides the Birmingham office with secure access to the company's server. The company has developed its own cross-platform e-commerce enablement package to run its online ordering system based on its broadband connections. The aim was to develop a system that focussed on customer service, reduced handling costs, virtual warehouses and increased productivity and which integrated easily into suppliers systems and provided a secure trading environment. The company has extended the integration of its back office systems via EDI and XML into its network of suppliers and has also recently introduced Wi-Fi to the Luton HQ. Results Watford Electronics' cross-platform e-commerce enablement package for its online ordering system has streamlined the company, improved productivity and efficiency and increased turnover. Customers are able to browse through the company's e-commerce web site, available 24/7, to find the required product and then order directly online. Once the customer has placed their order they are able to track the progress of the order in real time online on the web site. Nazir Jessa says that the website has greatly enhanced customer service. "Also, through the use of broadband we are able to reply instantly to emails of which we get over 2,000 a day. We definitely have better and extremely efficient CRM (Customer Relationship Management) as a result of broadband." On-line ordering has considerable benefits for Watford Electronics as well as for their customers, as the e-commerce system is seamlessly integrated with the company's back-office (legacy) system. "When the customer places an order on-line they are effectively writing the sales ledger entry. This has reduced our administrative workload dramatically." Watford Electronics' extension of the integration of its back office systems via EDI and XML into its network of suppliers was made possible by broadband and the always-on connection. Once the customer has placed an order and the credit card details have been cleared, a purchase order is generated automatically and sent electronically to the supplier. Invoices from the suppliers are also received electronically. This also provides major savings in terms of administrative workload. All processes occur in real-time. Another major benefit is the ability for Watford Electronics to automatically source products at the most competitive prices. Once a customer places an order the system will automatically scan the suppliers' systems for stock availability and prices. This enables Watford Electronics to offer competitive prices to its customers whilst at the same time achieving its required profit margins on sales. The integration with suppliers' databases has also meant that Watford Electronics has been able to increase its range of products by over 100,000 new lines and reduce the stock holding by over 60%, as customer orders are fulfilled directly from suppliers' warehouse in real-time. Additional operating efficiencies are achieved through the VPN between the Luton Head Office and the Birmingham sales office. Challenges A recent challenge taken up by Watford Electronics is the implementation of Wi-Fi, which they have now introduced to the Luton HQ. This enables wireless access to the Internet through the company's broadband connection. "This has the advantage of no cables, freedom to work wherever in the building and greater versatility." The last word As well as having a major impact on the operating efficiencies of the company, the e-commerce site has led to a considerable increase in sales. "Turnover from our e-commerce web site has increased by 64% over the past 18 months," says Nazir. The company is looking to further increase the amount of business over the web.