From print to Web
Nolan Supply is taking its custom catalog program to the next generation and giving distributors a taste of the online world
By Victoria Fraza, Managing Editor -- Industrial Distribution, 5/1/2001
While the e-commerce craze seems to have waned, many distributors are still on the lookout for a good e-business solution. One option is to look to other distributors for help. Master distributors have been a source of support to distributors of all sizes for years, and their model may offer the perfect solution for bringing your company's business to the Web.
Nolan Supply Corp., based in Syracuse, N.Y., is one of a handful of companies offering that kind of help. Since 1991, this family-owned, general line distributorship has been selling products through other distributors with its customized catalog program.
The program gives independent distributors access to more products without the hassle of having to stock the additional lines themselves. It increases Nolan Supply's volume and income in the process. The strategy has done this small firm well, accounting for 30 percent of overall sales. Nolan Supply has 60 employees and $15 million in annual sales.
A year and a half ago, company CEO John Nolan and his colleagues decided to try and take that success to the Web. Today, Nolan Supply offers distributors a customized Web site where their customers can research, browse for new items or order online. Orders are filled much as they are with the print catalog program — from the independent distributor's stock if he has the product or from some other source, including Nolan Supply.
"The catalog comes to life on the Web," says John Nolan. "It allows the distributors, all of whom have yet to get some exposure on the Web, to get that exposure very inexpensively."
Just how inexpensive is it? If the distributor has a Web site, Nolan Supply charges $950 to link that page to the Nolan site. That's accompanied by a monthly maintenance fee of $250. If the distributor doesn't have a Web site, Nolan Supply will create one for him — for $1,450. The distributor must also enroll in the print catalog program, which supports the Web program, for an investment of about $2,500 per year.
Still, Nolan and his colleagues believe they have a simple, affordable e-commerce solution for all kinds of distributors. And what really sets them apart, says Web master Ed Nolan, is the content Nolan Supply is able to provide. Ten years of compiling product information for the print catalogs has led to a library of images and product descriptions that is constantly being updated. It's tough for distributors to duplicate that effort and economically produce their own e-commerce site, he says.
"We've taken that information from the manufacturers, converted it to our [print] publications and then put it on the Web," says Ed Nolan, adding that distributors and others trying to create a similar site from scratch, "don't have the data to put on the site. We're doing something that's pretty unique."
The Nolans are also quick to point out that their solution may be just a temporary one for some companies. Nolan Supply requires only a three-month commitment to the program, though to date just one company has opted out after that initial period.
"The beauty of our [program] is, a distributor can get a full e-commerce Web site for peanuts and it gives him a chance to get his feet wet before he decides what to do," about e-business, says John Nolan. "At least, in the meantime, he's got a site where customers who request it can go in and do business. It's cheap insurance."
Nolan Supply's marketing manager Phil Hider says there are over 20 distributors in the program now, but he hopes to have between 70 and 80 signed up by the end of next year.
An interim solutionIDG New England is one company that's taking advantage of Nolan Supply's flexible program. IDG New England is a regional division of national distributor IDG, which is still working on a company-wide e-commerce program that would serve customers from coast to coast. In the meantime, IDG New England offers local customers online research and ordering capabilities through its affiliation with Nolan Supply. The company has been involved with Nolan Supply's print catalog program for two years and has been up and running with the Web program just over six months.
"IDG will eventually have its own [e-commerce] solution, but this is a good fit for now," says Chuck Houston III, IDG New England's vice president of marketing. He adds that between the print and Web program, Nolan Supply is providing his division with a complete marketing solution. On top of that, he says Nolan Supply offers a good partnership, noting the reasonable cost of the program. He adds that the program can be even more profitable if the distributor uses co-op advertising dollars to support it.
Logging on to IDG New England's Web site brings up the customized page. It looks exactly like the Nolan Supply Web site — the only difference is the company name, logo and contact information. From there, customers can search for products, submit orders and create a list of "favorites" that will allow them to check their order history for future buys. They can pay by credit card or charge orders to an existing account with IDG New England. Orders go through Nolan Supply's Internet Service Provider in Syracuse and are sent directly to IDG New England, with a confirmation sent to the customer. IDG New England takes if from there, running credit checks, checking stock and deciding how to fill the order — either through its own stock or through Nolan Supply.
"We're just a host," John Nolan explains.
Houston says Nolan Supply's reputation, product offering, location and support system are key reasons for participating in the program. In addition, he says the Web solution is easy to navigate — a plus for customers and for the distributor.
"This site is set up so that you get where you're going fast," Houston notes.
Nolan and his colleagues tout the simplicity of the site as well.
"Our site is simple, but it covers a lot of ground," says John Nolan, explaining that customers can order from the online catalog, which contains 25,000 SKUs, or through the "manufacturer's warehouse" option. The latter choice allows the customer to search manufacturers' databases if they know the part number they're looking for. Ed Nolan is constantly updating that option, which now gives customers access to roughly another half million SKUs.
A simple solutionIndeed, simplicity was the key to Nolan Supply's program from the beginning. As Hider explains, it had to be "fast, easy to use and logical so that any distributor's customer with a 486 or better computer would not be frustrated doing repeat orders." To that end, Hider says the site is designed so that: customers can access a product in no more than three clicks; a "quick buy" form allows the customer to enter part numbers from the company's seasonal print catalog directly to their "shopping cart"; and the "my favorites" option allows them to create a sub-catalog of up to 60 frequently ordered items. In addition, Nolan Supply's goal is to have images load in three seconds. And the "sign in" feature is an option, not something the customer has to repeat every time he wants to shop.
While the program will become more extensive as time goes on, John Nolan says ease of use will always be a key attribute. And while his company's print catalog is still its main focus, he expects the Web option to continue to grow — even if companies are using it just to get their feet wet. Everyone needs some kind of exposure on the Web, Nolan explains, so why re-invent the wheel?
"It saves time and money to take this route," he says, "and it doesn't mean people are in permanently — but it gives them something in the meantime.
"Distributors are going to be forced to get into this medium to conduct business. The problem is, your head starts to spin with the options and the money. We attacked it from that angle — so that their heads don't spin and that it's inexpensive."
Nolan and Hider say the transaction level is low, but traffic is high across all the sites they have up and running. Houston agrees, noting that for now, customers are more anxious to get on the site and look around than they are to order. But all three men are sure the orders will come eventually.
And when they do, they'll be ready.
















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