Implementation of the Digital Sales Channel in the Coatings Industry
Abstract
:1. Introduction
2. Research Procedure
- Review of theoretical bases;
- Conducting a survey (identification of sales channels and determining their importance);
- Conducting structured interviews (modeling—As-Is sales processes);
- Business process analysis;
- A proposal to improve the process with the help of a common technical enabler and digital transformation of the sales channel process (modeling—To-Be sales process);
- Verification of the efficiency of the To-Be sales process.
3. Results
3.1. Sales Channels in the Coatings Industry
- Personal sales;
- Retail;
- Online sales.
- Personal sales;
- Online sales;
- Retail.
3.2. As-Is Sales Processes
3.3. To-Be Process of a Digital Sales Channel
3.4. Verification of Digital Sales Channel Advantages
4. Discussion and Conclusions
Author Contributions
Funding
Acknowledgments
Conflicts of Interest
References
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References | Sales Channels |
---|---|
Alba et al. [31] | Supermarket, department store, category, catalog, internet retail, and interactive home shopping. |
Payne and Frow [32] | 1. Sales force (field account management, service, personal representation); 2. Outlets (retail branches, stores, depots, and kiosks); 3. Telephony (traditional telephone, facsimile, telex, call center contact); 4. Direct marketing (direct mail, radio, traditional TV); 5. E-commerce (e-mail, the Internet, interactive digital TV); 6. M-commerce (mobile telephony, SMS and text messaging, WAP, and 3G mobile services). |
Neslin et al. [33] | Internet, ATM, call centers, retail, catalog, internet, direct e-mail, store, telemarketing, direct selling. |
Neslin and Shankar [34] | Channels typically include the store, the Web, catalog, sales force, third party agency, call center and the like. |
Avery et al. [35] | Catalog channel, internet channel (websites), retail store. |
Verhoef et al. [36] | Retail channels (store), online website, direct marketing, mobile channels (i.e., smart phones, tablets, apps), social media customer touchpoints (mass communication channels: TV, Radio, Print, C2C). |
Kannan et al. [37] | Online, mobile and offline media and channels: search engines, display advertisement, social media, e-mail, print ads, radio, TV ads, website, mobile apps or sites, stores. |
Kannan [38] | Online and mobile channels (apps), social channels, search engines, e-mail, print catalog, TV. Individual marketing channels, such as search, display, e-mail, referral, and direct site. |
van Heerde et al. [39] | Online channel, physical store, mobile channel (app). |
Liu et al. [40] | 1. Offline channels (mainly physical stores and catalogs); 2. Online channels (e-mail and websites); 3. Mobile channels (mobile websites and apps); 4. Other touchpoints (social media, word of mouth advertising, promotions, and thank-you cards). |
Liu et al. [41] | Physical stores, online website, mobile website, apps. |
References | Sales Channel Activities |
---|---|
Nibusinessinfo.co.uk [42] | 1. Generating sales leads; 2. Make the right sales contacts; 3. Get sales appointments; 4. Sales meeting; 5. Negotiate and close the sale; 6. Sales follow-up and relationship building. |
Burt and Sparks [43] | 1. Comprising the sourcing of products; 2. Stockholding, inventory, and store merchandising; 3. Marketing effort, including branding; 4. Customer selection, picking, and payment; 5. Distribution of goods by or to the consumer. |
Melacini and Tappia [44] | 1. Transport from supplier to DC; 2. Warehousing (receiving and storing, inventory, picking, packing and consolidation); 3. Transport from DC to store; 4. Store activities (handling, inventory); 5. Home delivery. |
Company | Area of Business | Size | Years in the Industry | Responding Person |
---|---|---|---|---|
Company A | Production of coatings, lacquers, pigment pastes, and chemicals. | Small-sized enterprise | Since 1980 | Director and Head of Development |
Company B | Production of abrasives, putties—body fillers, primers, masking products, clear coats and paints, uniMix paints, hardeners, polishing system, bonding and sealing products, body shop, consumables tools and accessories, health and safety products, car cleaning products, technical aerosols, promotional articles. | Medium-sized enterprise | More than 20 years | Head of Development |
Company C | Production of titanium dioxide, sulphuric acid, zinc wire, zinc alloys, zinc bars, zinc anodes, recycled zinc, printing inks, powder coating, anti-corrosion coatings, copper fungicides, sulfur fungicides, fertilizers, phytopharmaceuticals, rubber coating. | Large-sized enterprise | Since 1873 | Sales Manager |
Company D | Sales, marketing, and logistics of specialty chemicals and ingredients. | Large-sized enterprise | Since 1995 | Marketing Manager |
Company E | Production of decorative coatings, industrial paints for wood and metals, car refinish program, road paints, resins, powder coatings. | Medium-sized enterprise | Since 1844 | Head of Coating Resins Sales |
Company F | Coatings for wood and metals, wall paints, plasters. | Small-sized enterprise | Since 1995 | Sales Manager |
Company G | Distributor and agent for raw materials and chemicals—they are concerned with products used in construction, coatings, detergent, cosmetics, rubber and plastic, food and feed. | Micro-sized enterprise | Since 1993 | Director |
Company H | Distributor for coatings, lacquers, and chemicals. | Small-sized enterprise | Since 1997 | Sales Manager |
Company I | Production of coatings for impregnation and protection of wood, stone, and other building materials, grouts, waterproofing coatings, cleaners. | Micro-sized enterprise | Since 2014 | Sales Manager |
Company J | Distribution and selling of various chemicals. | Micro-sized enterprise | Since 2011 | Business Development Manager |
Company K | Production of paints and coatings, performance applications, and composites. | Large-sized enterprise | Since 1961 | Business Developer and Innovation Leader |
Company L | Specialty chemicals for paints, coatings, adhesives, plastics, building materials: defoamers, powder additives, wetting and dispersion agents, mineral flame retardants, thickeners and rheology, additives, pigments and fillers. | Small-sized enterprise | Since 1947 | Managing Director |
Company M | Production of complex inorganic color pigments. | Medium-sized enterprise | Since 1920 | Regional Sales Manager |
Company N | The company operates in the chemical industry in several segments: coatings, adhesives, resins, pigments, and other specialty chemicals. | Micro-sized enterprise | Missing answer | CSO |
Company O | Provider of digital system solutions for measurement methods in the paints and coatings industry. | Small-sized enterprise | Since 2014 | Key Account Manager |
Company P | Missing answer. | Large-sized enterprise | Missing answer | Head of Sales |
Company R | Production of decorative coatings, industrial paints for wood and metals, car refinish program, road paints, resins, powder coatings. | Large-sized enterprise | Since 1988 | Assistant in the Sales Department |
Company S | Production and sales: paints and coatings, chemicals. | Large-sized enterprise | Since 2007 | Sales Manager |
No. 1 | Phases of the Sales Process | Sales Channels | ||
---|---|---|---|---|
Personal Sales | Retail | Online Sales | ||
10 | Marketing effort including branding | √ | √ | √ |
20 | Customer selection/acquiring | √ | ||
30 | Additional information provided by the seller | √ | √ | √ |
40 | Billing and payment | √ 2 | ||
50 | Product supply | √ | √ | |
60 | Product storage | √ | √ | |
70 | Inventory and store merchandising | √ | ||
80 | Picking and packing | √ | √ | √ |
90 | Distribution of products | √ | √ | |
100 | Billing and payment | √ | √ | √ |
Process Complexity Data | Sales Channels | ||
---|---|---|---|
Personal Sales | Online Sales | Digital Sales | |
The number of activities | 37 | 26 | 29 |
The number of possible transitions between activities | 30 | 20 | 21 |
The number of positions (employees) | 11 | 9 | 8 |
The number of connections between positions and activities | 43 | 26 | 33 |
The number of used documents | 9 | 9 | 5 |
The number of documents created within a process | 6 | 7 | 3 |
The number of decisions made by employees | 3 | 2 | 3 |
The number of used information technology (ICT) | 5 | 3 | 4 |
The number of activities supported by the information technology (ICT) | 18 | 14 | 16 |
Indicators of Process Structure | Sales Channels | ||
---|---|---|---|
Personal Sales | Online Sales | Digital Sales | |
Process activities | 97 | 96 | 97 |
Number of transitions between activities | 19 | 23 | 28 |
Process positions | 9 | 11 | 13 |
Level of inclusion of the positions | 11 | 11 | 14 |
Percentage of created documents | 33 | 22 | 40 |
Percentage of created documents and activities | 84 | 73 | 90 |
Process decisions | 92 | 92 | 90 |
Process information technologies | 80 | 67 | 75 |
Percentage of activities supported by the ICT | 49 | 54 | 55 |
No. | Process Phase | Time Estimates (in Hours, h) | Optimistic | Most Probable | Pessimistic | Expected | Phase Throughput |
---|---|---|---|---|---|---|---|
10 | Marketing effort, including branding | Waiting | 2.00 | 4.00 | 8.00 | 4.33 | 175.38 1 |
Orientation | 0.30 | 1.00 | 2.00 | 1.05 | |||
Processing | 80.00 | 160.00 | 300.00 | 170.00 | |||
20 | Customer selection/acquisition | Waiting | 0.00 | 0.00 | 0.01 | 0.00 | 0.28 |
Orientation | 0.00 | 0.00 | 0.00 | 0.00 | |||
Processing | 0.13 | 0.25 | 0.50 | 0.27 | |||
30 | Additional information provided by the seller | Waiting | 0.02 | 0.04 | 0.10 | 0.05 | 0.61 |
Orientation | 0.02 | 0.04 | 0.10 | 0.05 | |||
Processing | 0.10 | 0.50 | 1.00 | 0.52 | |||
50 | Product supply | Waiting | 0.02 | 0.04 | 0.10 | 0.05 | 0.32 |
Orientation | 0.02 | 0.04 | 0.10 | 0.05 | |||
Processing | 0.05 | 0.20 | 0.50 | 0.23 | |||
60 | Product storage | Waiting | 0.02 | 0.04 | 0.10 | 0.05 | 1.61 |
Orientation | 0.30 | 1.00 | 2.00 | 1.05 | |||
Processing | 0.10 | 0.50 | 1.00 | 0.52 | |||
80 | Picking and packing | Waiting | 0.02 | 0.04 | 0.10 | 0.05 | 0.61 |
Orientation | 0.02 | 0.04 | 0.10 | 0.05 | |||
Processing | 0.10 | 0.50 | 1.00 | 0.52 | |||
90 | Distribution of products | Waiting | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 2 |
Orientation | 0.00 | 0.00 | 0.00 | 0.00 | |||
Processing | 0.00 | 0.00 | 0.00 | 0.00 | |||
100 | Billing and payment | Waiting | 0.02 | 0.04 | 0.10 | 0.05 | 0.32 |
Orientation | 0.02 | 0.04 | 0.10 | 0.05 | |||
Processing | 0.05 | 0.20 | 0.50 | 0.23 |
No. | Process Phase | Time Estimates (in Hours, h) | Optimistic | Most Probable | Pessimistic | Expected | Phase Throughput |
---|---|---|---|---|---|---|---|
10 | Marketing effort, including branding | Waiting | 2.00 | 4.00 | 8.00 | 4.33 | 175.38 1 |
Orientation | 0.30 | 1.00 | 2.00 | 1.05 | |||
Processing | 80.00 | 160.00 | 300.00 | 170.00 | |||
30 | Additional information provided by the seller | Waiting | 0.02 | 0.04 | 0.10 | 0.05 | 0.61 |
Orientation | 0.02 | 0.04 | 0.10 | 0.05 | |||
Processing | 0.10 | 0.50 | 1.00 | 0.52 | |||
40 | Billing and payment | Waiting | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 3 |
Orientation | 0.00 | 0.00 | 0.00 | 0.00 | |||
Processing | 0.00 | 0.00 | 0.00 | 0.00 | |||
50 | Product supply | Waiting | 0.02 | 0.04 | 0.10 | 0.05 | 0.32 |
Orientation | 0.02 | 0.04 | 0.10 | 0.05 | |||
Processing | 0.05 | 0.20 | 0.50 | 0.23 | |||
60 | Product storage | Waiting | 0.02 | 0.04 | 0.10 | 0.05 | 1.61 |
Orientation | 0.30 | 1.00 | 2.00 | 1.05 | |||
Processing | 0.10 | 0.50 | 1.00 | 0.52 | |||
80 | Picking and packing | Waiting | 0.02 | 0.04 | 0.10 | 0.05 | 0.61 |
Orientation | 0.02 | 0.04 | 0.10 | 0.05 | |||
Processing | 0.10 | 0.50 | 1.00 | 0.52 | |||
90 | Distribution of products | Waiting | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 2 |
Orientation | 0.00 | 0.00 | 0.00 | 0.00 | |||
Processing | 0.00 | 0.00 | 0.00 | 0.00 | |||
100 | Billing and payment | Waiting | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 3 |
Orientation | 0.00 | 0.00 | 0.00 | 0.00 | |||
Processing | 0.00 | 0.00 | 0.00 | 0.00 |
No. | Process Phase | Time Estimates (in Hours, h) | Optimistic | Most Probable | Pessimistic | Expected | Phase Throughput |
---|---|---|---|---|---|---|---|
10 | Marketing effort, including branding | Waiting | 2.00 | 4.00 | 8.00 | 4.33 | 175.38 1 |
Orientation | 0.30 | 1.00 | 2.00 | 1.05 | |||
Processing | 80.00 | 160.00 | 300.00 | 170.00 | |||
30 | Additional information provided by the seller | Waiting | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 4 |
Orientation | 0.00 | 0.00 | 0.00 | 0.00 | |||
Processing | 0.00 | 0.00 | 0.00 | 0.00 | |||
40 | Billing and payment | Waiting | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 3 |
Orientation | 0.00 | 0.00 | 0.00 | 0.00 | |||
Processing | 0.00 | 0.00 | 0.00 | 0.00 | |||
50 | Product supply | Waiting | 0.02 | 0.04 | 0.10 | 0.05 | 0.32 |
Orientation | 0.02 | 0.04 | 0.10 | 0.05 | |||
Processing | 0.05 | 0.20 | 0.50 | 0.23 | |||
60 | Product storage | Waiting | 0.02 | 0.04 | 0.10 | 0.05 | 1.61 |
Orientation | 0.30 | 1.00 | 2.00 | 1.05 | |||
Processing | 0.10 | 0.50 | 1.00 | 0.52 | |||
80 | Picking and packing | Waiting | 0.02 | 0.04 | 0.10 | 0.05 | 0.61 |
Orientation | 0.02 | 0.04 | 0.10 | 0.05 | |||
Processing | 0.10 | 0.50 | 1.00 | 0.52 | |||
90 | Distribution of products | Waiting | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 2 |
Orientation | 0.00 | 0.00 | 0.00 | 0.00 | |||
Processing | 0.00 | 0.00 | 0.00 | 0.00 | |||
100 | Billing and payment | Waiting | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 3 |
Orientation | 0.00 | 0.00 | 0.00 | 0.00 | |||
Processing | 0.00 | 0.00 | 0.00 | 0.00 |
No. | Phases of the Sales Process | Phase Throughput Time (h) | ||
---|---|---|---|---|
Personal Sales | Online Sales | Digital Sales | ||
10 | Marketing effort, including branding | 175.38 1 | 175.38 1 | 175.38 1 |
20 | Customer selection/acquisition | 2.28 | 0.00 2 | 0.00 2 |
30 | Additional information provided by the seller | 0.61 | 0.61 | 0.00 3 |
40 | Billing and payment | 0.00 2 | 0.00 3 | 0.00 3 |
50 | Product supply | 0.32 | 0.32 | 0.32 |
60 | Product storage | 1.61 | 1.61 | 1.61 |
80 | Picking and packing | 0.61 | 0.61 | 0.61 |
90 | Distribution of products | 0.00 4 | 0.00 4 | 0.00 4 |
100 | Billing and payment | 0.32 | 0.00 3 | 0.00 3 |
PROCESS THROUGHPUT TIME: | 3.75 | 3.15 | 2.54 | |
THROUGHPUT TIME REDUCTION (in %): | 15.9% | 32.1% |
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Krhač Andrašec, E.; Urh, B.; Senegačnik, M.; Kern, T. Implementation of the Digital Sales Channel in the Coatings Industry. Processes 2021, 9, 1168. https://doi.org/10.3390/pr9071168
Krhač Andrašec E, Urh B, Senegačnik M, Kern T. Implementation of the Digital Sales Channel in the Coatings Industry. Processes. 2021; 9(7):1168. https://doi.org/10.3390/pr9071168
Chicago/Turabian StyleKrhač Andrašec, Eva, Benjamin Urh, Marjan Senegačnik, and Tomaž Kern. 2021. "Implementation of the Digital Sales Channel in the Coatings Industry" Processes 9, no. 7: 1168. https://doi.org/10.3390/pr9071168