Background
ICL’s
main revenue source came from developing, manufacturing and
selling,
through the direct sales force, large mainframe
computer systems. To increase small computer systems and terminals
revenue a third party sales channel had been established. However
pressure on hardware margins was forcing third party resellers
to value add thus reducing hardware sales volume. Manufactures
like ICL therefore needed to establish a Direct Sales Channel
to increase the sales of low value computer hardware, software
and supplies. ICL was in the supplies business but was rapidly
losing market share.
ICL’s
business culture was that of selling large systems, enjoying
high margins
and long lead-time from order to despatch
with business process and systems that supported this type of
business.
Brief
• To create ICL’s
Direct marketing sales channel.
• Stop the decline in revenue and market share from the sale of
supplies.
My Approach
• Review
the current direct marketing capability of the supplies business
and the additional use that could be made of
its facilities including its warehouse.
• To understand best practice in running a high volume low margin
business benchmarked against the retail industry.
• Implement new processes with new supporting business systems.
• Work closely with ICL Purchasing to set up new processes and
ways of working to support a high stock turn business and rapid
change in product and price.
• Develop close working relationship with suppliers of both internally
and externally produced product.
• Update product range selecting suppliers for new products.
• Organise the business into three product streams Hardware, Software
and Supplies and externally recruit marketing managers for each
stream.
• To support the three product streams, set up a common telesales
department and back office.
• Produce direct marketing catalogues.
• Reduce the supplies business product range and focus on those
products that were achieving and likely to achieve high volumes
of sales.
• Clear old stock through product promotions.
• Establish a capability to configure with software PCs prior to
dispatch.
• Careful positioning of the new direct sales channel with the
Mainframe and Third Party channels.
Achieved
• Created, established and positioned this new channel
of distribution growing sales to £17.5M.
•
Stopped the decline in revenue in the supplies business and grew
to £7M+.
• Reduced write-offs by selling excess stock and clearing products
that were nearing end of shelf life.
• Designed and implemented business processes and supporting IT
systems, reducing delivery from weeks to next day.
• Sourced packaged PC software and support.
• Established a chargeable pre despatch service to configure and
load PCs with software.
• Created direct marketing catalogues and set up tele-sales department.
• Developed simple hardware configuration guides.
Brian Lewis
Profile
An International
Business Change Director experienced in both FTSE 100 companies
and the public sector with core skills in
change management, process re-engineering, information technology
and software development. Impressive record of delivering commitments
and meeting financial targets in a wide range of roles - Business
Turnaround, Channel Development, Business Development, Project
Management - in Europe, USA, Middle East and Australasia.
