Please click here to access the comprehensive MIDaS training manual.
The combination of widespread access to broadband telecoms services and specialist IT programs for online trading is revolutionising the way UK tyre wholesalers work with their customers, according to experts at Cam Systems.
Cam has experienced a 400% growth in tyre volumes being ordered through its MIDaS Virtual Warehouse system and a 20-fold increase in customers using it, since the launch of a web-based version of the service in September 2004. The system allows wholesalers to set up direct online trading links with customers for 24-7-365 stock, price and delivery enquiries and order placement.
So popular has the Virtual Warehouse system become it handled the electronic ordering of more than 2.25 million tyres in 2006, with a forecast of up to three million in 2007.
Mike Allen, Cam Systems’ managing director, says wholesalers and retailers who switch to web-based online ordering are experiencing huge benefits: “For the wholesaler there are dramatically reduced administration costs, especially in telesales, order processing, pricing and stock management, which are now carried out in real time and with far more accuracy and consistency than can be achieved with manual systems.
“For retailers, it means faster ordering and delivery, up-to-the minute pricing information and better use of depot staff, who are freed from making numerous phone calls to identify stock, price and delivery information,” says Mike.
While MIDaS has been used by leading wholesalers for a number of years, the arrival of a nationally available broadband service in 2004 was the trigger for dramatic expansion. At its launch in October 2004, around 100 Cam customers used the web-based program, placing orders running at an average of 45,000 units per month. By October 2006 those figures had rocketed to more than 2,000 customers and 185,000 units
Wholesalers market MIDaS as their own branded service and are responsible for software installation and training with participating customers. Account access is certificated ensuring the necessary confidentiality and security and allowing price and discount structures to be individually controlled and negotiated.
Prominent businesses including Micheldever Tyres, North Eastern Tyre & Exhaust, Tanvic Tyres, Broadway Tyres and other Group Tyre members, are successfully using the system to develop more efficient – and profitable - customer relationships.
The recent dramatic growth in online trading volumes reflects the intensely competitive nature of the UK tyre business. Every link in the distribution chain seeks to reduce the time and cost of delivery and online trading has provided a major breakthrough by taking out overhead costs while improving speed, efficiency and customer service.
That’s why Mike Allen is confident that MIDaS will be handling up to £90 million worth of tyres in 2007, representing around a fifth of the UK’s wholesale market.
Wider industry recognition of the benefits of business to business online trading is also generating demand for online retailing solutions among Cam customers. This is being driven by consumers looking more and more to e-shopping as their preferred alternative to having tyres replaced in a depot or fast fit centre.
“The next stage, the natural progression as far as I’m concerned, is for the trade to market more online tyre and fast fit services direct to the consumer,” says Mike Allen. “It’s already happening with a limited number of specialist retailers, but the opportunity is enormous for many more businesses to get involved. The consumer is already buying a vast amount of goods and services online, so the culture is well-established.
“It’s definitely an area that our customers are getting more involved in. Our Development team currently have a number of online retailing projects underway and the level of interest from these and other customers suggests that it will continue to grow in popularity. It’s important to start considering how best to take advantage of it, otherwise some businesses will be left behind in the highly competitive online marketplace that is rapidly evolving,” warns Mike Allen.
Key benefits to wholesalers of online trading:
Key benefits to retailers of online trading:
