WIXLIB

Epicor for Distribution Support business-to-business (B2B)customers: the ability to provideaccess to see special pricing, makefast repurchases, make paymentson their accounts, request a quotethrough RFQ forms Integration with sales team: usee-commerce to boost your salesteams’ efforts by providing accessto account information and data suchas purchase history, transactionalrepeat business, service calls, andcustom discounting"We’ve experienced consistent doubledigit growth and our e-commerce softwareis an integral part of that growth. It’s ourdigital face to the world.”James Davis, President Industrial Specialties Mfg Security: ensure customer andcompany information is secure withHTTPS, user IDs, and passwords Reinforce marketing: newslettersignup, product recommendations,and targeted pop-ups ensurecustomers are informed andsupported throughout the lead cycle Integration with your ERP: ensuree-commerce seamlessly integrateswith your ERP to ensure the accurateand automatically-updated productinformation, order and shipmentdetails, pricing, and inventory levelsWhat you can Track: Increased revenue: capture newtransactional sales leads and businessthat wouldn’t otherwise be economical,and benefit from increasing the averageorder size of field sales Reduced cost of sales: by allowingself-serve transactions throughe-commerce, eliminate the cost andadministrative work of sales reps andstaff processing transactions, all whileshortening the average sales cycle Faster go-to-market: introduce newproducts faster and easier by launchingvia e-commerce and digital channels,while also providing the ability torapidly test product mix, messaging,and pricing Improved customer experience:customers benefit from a fasterand more convenient purchasingexperience, allowing them to browseand buy from anywhere at anytimeDigital Transformation: A Playbook for Distributors 11

Epicor for DistributionCloudHow cloud technology enables Digital TransformationUsing cloud-based software makes services and applications available to userson-demand via online servers, as opposed to being provided from your business'on-prmeses servers. For example, when your ERP system is built on and delivered viathe cloud, your business' on-premises servers. For example, when your ERP systemis built on and delivered via the cloud your digital journey is accelerated becauseyou can run and grow your business without having to worry about key issues thathaunt on-premises deployed systems, like upgrades that include cumbersomecustomizations, a server refresh, or threat of ransomware.Moving to the cloud is a great step to digital realization because technology providerscan nimbly move on-premises, closed systems to an agile, flexible, on-demandcloud infrastructure, all in a clearly defined timeline. No longer is this move aninsurmountable obstacle. It can be approached in stages to get you on the path toscaling an IT investment for real business returns. Your IT resources can be dedicatedto move from a static technology environment to a technology ecosystem thatprovides business insights and action to keep your customers happy.12 Digital Transformation: A Playbook for Distributors

Epicor for DistributionWhat to Consider WhenChoosing Cloud Technology: Provider Support: the amount and typesof investment the Cloud provider makesin their platform on an annual basis Availability: the reliability of the systemto provide industry-standard uptime tomatch or beat competitors Scalability: if the system can keep pacewith growth needs Accessibility: the ability to easilyintegrate into other technology inyour environment Flexibility: options to use cloudcapabilities that support your specificoperation, including as it changes inthe futureWhat you can track: Reduced operational costs: withintegrated data of your operations, youcan identify and address inefficienciesfaster and with greater precision Decreased security costs: with Cloudsolutions, your vendor makes securitytheir top priority, allowing your teamto focus on growth Reduced administration: free yourIT department from the burden ofadministrating a database, operatingsystems, or applications No more hardware: eliminate theneed for hardware – and the risk andmaintenance that comes along with it– as you scale and grow Automatic upgrades: get the latestreleases on a regular cadence,avoiding periodic and manualorganization-wide updates“By choosing the cloud option wemoved to a modern ERP and gotout of the hardware managementbusiness. We don’t have to pay toupdate servers or move our legacytechnology along with all theexpensive customizations to newservers – it would have been costly.”Scott Young, President George E. Booth Higher employee satisfaction: supportinitiatives such as remote work easilyDigital Transformation: A Playbook for Distributors 13

Epicor for DistributionEnterprise ContentManagementHow enterprise content management enablesDigital Transformation.Enterprise Content Management (ECM) makes managing your business’ documentseasier, faster, and with greater consistency and control. Documents and files thatused to be unstructured are now stored centrally and made available to youremployees and customers. You can rest easy knowing that the latest versions arealways in use – reducing the pain and headache of paper documents, version control,and locating files.What to ConsiderWhen ChoosingCloud Technology: Security: granular settings that putyou in control of who can access andedit documents Ease of Use: ensure users cannavigate your ECM with speed andusability with little to no training Collaboration: ensure files can easilybe shared and edited with others End-to-End Lifecycle: features tocapture, store, publish, and track/audit documents14 Digital Transformation: A Playbook for Distributors Integration: easily connect with othersystems like your ERPWhat you can Track: Improved Productivity: faster, easierdocument discovery and managementto boost productivity Customer and Supplier Experience:build better relationships and improvesales cycles by providing quick accessto information Error Reduction: by streamliningdocument discovery and criticalinformation for decision-making

Epicor for Distribution“ECM allows us to spend less time handling the hard copies of invoices, filing, anddocument retrieval. It’s dramatically reduced the workload needed for these processes.”Linda Larsen, Business Systems Admin Precision Valve & AutomationDigital Transformation: A Playbook for Distributors 15

Epicor for DistributionData Analyticsand VisualizationHow data analytics and visualizationenables Digital Transformation.Data Analytics and Visualization help unshackle you and your team fromthe grind of data collection and static reporting. This technology, whichcan be fed directly from your ERP, brings numbers to life through dynamicreporting and compelling visualizations that help you pay proactiveattention to revenue, expenses, and other KPIs that matter.With real-time analytics delivered digitally, businesses can stay connectedto their revenue and performance numbers and be able to makeinformed decisions promptly.  The way you manage your business will betransformed because your decisions are backed by quantifiable insights.16 Digital Transformation: A Playbook for Distributors

Epicor for DistributionWhat to Consider When Choosing DigitalAnalytics & Visualization Technology: Designed Interface: for faster reporting, consolidation, customization, anddrill-down of key data Customization options: to add, calculate, and visualize the numbers thatmatter most in the way your organization uses them, such as EBIT, margins,and ratios Cloud-based with secure access: available from anywhere for those withaccess and administrative permissions Multiple sources: an ability to bring a range of data sources together fromacross your business including your ERP – and even externally – to revealwhat’s really going onWhat you can Track: Time savings: fast and easy monthly reporting, consolidations, comparisons,customized statements, and permission-setting Reduced reporting admin: automatically report, analyze, and track numbersfor legal and non-legal entities like branches, area departments, and specificproduct lines Faster, better decision-making: a single source of truth that is always up todate, without the headache and errors of managing static spreadsheets“Data is now more important thanever. My declaration was that weneed a single source of truth, soevery bit of data we have is going tofunnel through our data analyticsengine. Now we’ve got a myriadof dashboards and much moresophisticated forecasting. That’sreally important in an environmentlike this.”John Wiborg, CEO Stellar IndustriesDigital Transformation: A Playbook for Distributors 17

Epicor for DistributionSmart ShippingHow smart shipping enables Digital TransformationSmart Shipping technology is another way to venture into your digital journey.It enables you to process shipping transactions faster and more efficiently, criticalwhen the pace of order fulfillment is growing every day and sales are happeningfaster than ever.When shipping integrates with your ERP, details are automatically pulled in,shared with carriers via the web, and estimated for freight charges and trackinginformation. All of this automatically appears in your ERP system in real-time,letting you process any shipment using any licensed carrier all from the samescreen. You’ll see a significant reduction in errors associated with manuallytaking data from the carrier to your ERP system. And finally – if integrated –all this triggers automated invoicing of freight charges. The most significantbusiness outcome Smart Shipping delivers is the ability for your employees tohandle inquiries from customers anxiously awaiting their deliveries. The impact oncustomer satisfaction can be transformative. Your employees are better equippedto handle inquiries from customers anxiously waiting for deliveries, transforminghow you serve your customers.18 Digital Transformation: A Playbook for Distributors

Epicor for DistributionWhat to ConsiderWhen Choosing SmartShipping Technology: Support for multiple carriers: toenable rate shopping and providecustomers with options at the timeof quoting, ordering, or shipping Automation: to instantly trigger billof lading generation,email notifications, invoicing, andother key points in theshipping workflow Easy to use interface: ensure yourSmart Shipping technology isadopted and loved by employees,carriers, and customers Integration with ERP: seamlessconnections to your ERP systemensures a quick process of shippingtransactions more efficientlyWhat you can Track: Reduced overallfreight spend: benefit from improvedshipping productivity; do more withless by automatically streamliningmultiple tasks into a single workflow Elimination of errors,surcharges, and fines: manual errorsno longer lead to poor estimations Improved customer service: providecustomers with the best ratesand multiple shipping options atmultiple points throughout the salescycle; seamless email notificationsas orders are processed and shipped Reduced onboarding and trainingtime: with automated processing,benefit from less trainingon fewer workflow steps"When we integrated our shipping withERP, we quadrupled sales, reducedshipping days from four to one, andvastly improved productivity. This isour foundation to thrive in this hypercompetitive environment.”Mary Porter, CEO Emergent Safety SupplyDigital Transformation: A Playbook for Distributors 19

Epicor for DistributionElectronic Data InterchangeHow Electronic Data Interchangeenables Digital Transformation.Electronic Data Interchange (EDI) is a set of standardsthat defines common formats for information to beexchanged electronically between two organizationsthat do business together – or “trading partners.”It allows companies to speak the same languageelectronically and communicate more efficiently to bedigitally connected.EDI eliminates paper-based process and manualprocessing – and the inefficiencies that come with it – byautomating the electronic flow of information in packetsof formatted data.  It has become a global standard forinformation exchange between trading partners.Documents exchanged through EDI may includeinvoices, purchase orders, advance shippingnotifications, student transcripts, healthcare claims, andmany more. By considering EDI technology, a distributoris no longer on an island; they introduce themselvesinto the supply chain.20 Digital Transformation: A Playbook for DistributorsWhat to Consider When ChoosingEDI Technology: Supports trading partners: consider how many tradingpartners with whom you’ll need to exchange EDI, thetypes of transactions required, and the frequency.These will drive the mapping, translation, andcommunications requirements best for your business. Integration with back-office systems: to ultimatelyrealize the full benefits of EDI, integration with yourbusiness systems is critical. Ensure the EDI youchoose can receive and share information with thesesystems. Additionally, if some manual data will berequired, look for a system that allows this as well. Resources and commitment: depending on the team,resources, and time available to deploy and manageEDI, you may consider a range of options includingweb-based, managed services, installed software, orcloud-based. Cloud tends to be the best option forcompanies looking for flexibility and control withoutthe IT overhead.What you can Track: Cost savings: automating the flow of information, andreducing human manual work, savings on overhead,printing and paper, data entry errors, inventory, andpenalties and chargebacks. Partner collaboration: because data sent via EDI isnever physically ‘touched,’ the likelihood of errors isgreatly reduced, promoting stronger relationshipsbetween trading partners. More importantly, valuablepartner information is visible faster and easier withinventory status, forecasts, and more. Improved efficiency: sending information via EDI takesjust seconds or minutes. Partners can act on receiveddata immediately and with less manual work, meaningmore efficiency for both you and them. This is evenmore true when integrated with your internal businessand accounting systems. Greater security: information exchange becomes moresecure using encryption and other security protocols.

Epicor for Distribution“I used to spend a ton of time trying tofind the data to dispute chargebacks,but now it’s so easy to locate the dataand extract the right information.”Lori Julius, Vendor Compliance Manager Lifetime BrandsDigital Transformation: A Playbook for Distributors 21

Epicor for DistributionSection 3:Three Lensesfor Going DigitalWhat You’ll Find in This Section: People: designing digital initiatives for customersand employees Strategy: ensuring strategic alignment and returns Capabilities: accessing technology and resourcesto implement22 Digital Transformation: A Playbook for Distributors

Epicor for DistributionIntroduction to the Three LensesIt’s easy to assume that Digital Transformation is allabout technology. While the key enablers of goingdigital are of course new and emerging technologies,it is important to understand that there are two othercritical factors for successful Digital Transformation:people and strategy. Remember, technology isan enabler for your business, which is largelydriven by people: customers, employees, and partners.The intersection of these three lenses – People, Strategy,and Capabilities – forms the sweet spot for unlockingnew value and growth for your business. These lensesare inspired by Design Thinking, an approach to tacklingbusiness opportunities by integrating the needs ofpeople, the possibilities of technology and capabilitiesof your business, and the strategic goals ofyour business1.In the following pages, we’ll dive into each of thesethree critical lenses to help you answer key questionsthat maximize success when bringing digital solutionsinto your business.PeopleCapabilitiesStrategyDigital Transformation: A Playbook for Distributors 23

Epicor for DistributionLens 1:PeopleWill your customers, employees, and partnerslove it?“We, and more of our customers, arejumping online and buying. We need to getahead of the click. We have to give peopleaccess to the tools they need to do their jobsright on the shop floor.”Matt Schron, General Manager Jergens Industrial Supply24 Digital Transformation: A Playbook for DistributorsFor any new digital initiative to succeed, it must be adopted and usedby people. When it comes to customers, this means asking: what arethe pain points or unmet needs my customers might have when itcomes to interacting with or purchasing from our business? Often,prioritizing these areas for your first digital initiatives with the largestimpact provides momentum for continuing the digital journey.Of course, customers aren’t the only people who need to have theirneeds met when it comes to working with you. Employees andpartners can also benefit from digital initiatives. You may already beaware of, for example, manual data entry tasks that are burdensomeand time consuming for your employees. Targeting these areas withdigital solutions has the added benefit of – over and above improvingproductivity – attracting and retaining digital natives and learninghungry talent. For partners, removing obstacles to better collaborationand information sharing leads to more fruitful and seamless partnerships.

Epicor for DistributionIn summary, the key questions to ask when itcomes to identifying and pursuing digital initiativesthat can positively impact your people are: Does this solve a known or suspected pain point – or create new gain– for our customers by making something easier, faster, cheaper, ormore enjoyable?People Does this improve the lives and work of our employees and partnersby removing friction, improving productivity, or freeing up their timeto work on higher-value activities?CapabilitiesStrategyWant to put this part of the playbook to use? We’ve included a scorecardin Section 4 to help you prioritize digital initiatives based on youranswers to these critical questions for People, Capabilities, and Strategy.Digital Transformation: A Playbook for Distributors 25

Epicor for DistributionLens 2:StrategyDo the business benefits make this initiativeworth it?“[The cloud] has allowed us to streamlineour efforts and decrease the amount ofhuman capital needed to grow our business.It has allowed us to focus on our strategicplan and our long-term vision.”Vivian Pappel, President Midland S

Digital Transformation: A Playbook for Distributors 7 Epicor for Distribution Defining Digital Transformation Digital Transformation has been so heavily covered recently that it’s easy to forget what it means – and what it doesn’t. Let’s start with a simple definition and then further define each