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SAQ

SAQ. Presented by: Delattre Therese Groizard Carlos Petersen Pablo. Content. What is SAQ? B2C site B2B solutions Value creation & capture Conclusion. Société des alcools du Québec (SAQ).

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SAQ

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  1. SAQ Presented by: Delattre Therese Groizard Carlos Petersen Pablo

  2. Content • What is SAQ? • B2C site • B2B solutions • Value creation & capture • Conclusion

  3. Société des alcools du Québec(SAQ) • State-owned corporation responsible for the trade of alcoholic beverages. (Monopoly) since 1921 • 5500 employees • $2.4B annual sales(2003) ($540M net income) • 77% Consumers and 23% Permit Holders • Network: • 30 Express, 290 Classiques, 66 Sélections and 2 Signature stores • www.saq.com Web site VSOP System • 6 SAQ Dépôt stores and 3 bulk wine points of sale.

  4. 50% Mediagrif, 50% SAQ Globalwinespirits.com Public B2B SAQ Other Buyers $$$ $$$ International Wine Makers B2C Customers Agents B2B + + Permit Holders Local Wine Makers SAQ.COM B2B B2C = Most purchases = <.2% of sales

  5. Net income 1994-2004 Distribution of Selling Price March 2000

  6. How much goes to IT?

  7. www.saq.com • Purpose of site • Age constraints • Delivery constraints • Prices are the same

  8. B2C-Features • ABCs of Wine, ABCs of beer, ABCs of Spirits • Recipes, games, advice • Promotions • Links to Clubs & Associations • Extensive list of related sites links & Search engines • The Courrier vinicole publication (membership) • Groceries & Convenience Stores Section • Business-to-Entertainment section • Gift Certificates • Gift Shop • Business receptions ideas

  9. Measures of Success • Surveys & Customer complaints • 9000 visits daily & growing • The Courrier vinicole publication 2000 members • SAQ e-Newsletter – 115,000 users • 1500 orders/week @ 93% efficiency

  10. Sites Comparison: B2C

  11. Business to Business • One private (SAQ-B2B) and the other one public (Global Wines and Spirits – GWS). • Globalwinespirits.com • 5 languages • Call for tenders • Spot market place • Catalogues • Private extranets • File management/conversion

  12. SAQ-B2B.com • A private B2B transactional portal owned and operated by the SAQ’s e-Commerce Division • No membership fees, product list or per-transaction fees to pay • SAQ is the only buyer on the portal • The SAQ online saves time, effort and money (purchasing, shipping, and receiving)

  13. SAQ-B2B.com (con’t) • The only equipment required is a computer and Internet access • Highest industry standards for security, boasting data encryption, back-up support systems and firewalls • Easy-to-use functions(call for tenders, logistics mgt, doc sharing, freight forwarders, and shipment tracking)

  14. The questions of added Value • How does SAQ add value to its core business through its web site? • How is the value created captured ? • By SAQ • By Suppliers • By Customers • By Taxpayers

  15. Value added Knowledge base Category search Personalization Exchange forums B2C Up-stream B2B Down-stream B2B SAQ Yes Yes No No Yes Yes No How can a wine retailer add valueon-line

  16. Characteristics of the Internet Reach Flexibility and ease to use Personalization Interactivity Asynchronous communication E-Commerce transactions B2B SAQ application benefits Restricted to QC Benefits customers (no impact on growth) Potential not exploited Forums not available E-mail support provided Optional to customers and compulsory to suppliers Limited to suppliers Benefits for SAQ of going electronic

  17. Creation of value • Reduction of transaction costs (relative low importance) • Accessibility of knowledge base to customers • Products • Prices • Retail stores data • Convenience of home deliveries to customers • Certainty of product availability at retail stores • Electronic transactions with suppliers (B2B)

  18. Increased process efficiencies due to systems integration throughout the Supply Chain • On line E-Commerce transactions linked to SAQ’s ERP system • Suppliers’ integration via: • B2B portal (transactional via EDI) • Global Wine & Spirits portal • PRP (Planned Replenishment Model) to be implemented

  19. How is the created value being captured? • By SAQ • Enhancements achieved through site don’t play as a differentiating factor • Cost reductions obtained not even quantified • Market: Captured and limited to QC • Growth of market in Quebec not a government priority • Limited cannibalization from outlets • Promotion of site self restricted

  20. How is the created value being captured? • By SAQ’s suppliers • Increased efficiency through electronic transactions • Improved logistics • Access to on-line sales information (overnight updates) • Close communication on promotional activities (through agents)

  21. How is the created value being captured? • By SAQ’s customers • Access to knowledge base and specialized consulting services • On-line ordering convenience • Home delivery service (flexible service optional) • Access to on-line information on inventories at outlets • 17/5 Call center (complementary info.)

  22. How is the created value being captured? • By taxpayers (as stakeholders) • Transparency: On-line access to all information

  23. Conclusion • Small part of a larger supply chain integration strategy • Some products are not easily or desirably sold online • The SAQ is using the web technology to complement its service to the consumer and to the suppliers • Whatever time is saved from buying online is time to be used to savor the wine!

  24. THANKS !

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