E-Business Technology and Consulting Services

Using the Internet to improve your safety program

By Betty Hintch

Although safety equipment distributors have been offering e-commerce capabilities on their Web sites, end users have been testing the waters of this new technology, rather than diving in.

Dirk Meister, VP, Colonial/Michigan Glove, Oak Park, Mich., says, "We get a lot of hits from individual buyers, rather than companies purchasing for their entire workforce. Because the purchase of safety equipment requires compliance with regulations and liability, most employers prefer to have an ongoing relationship with a sales representative who can answer questions about the appropriateness of products for particular hazardous conditions."

Mike McGrew, a spokesperson for Grainger, Lake Forest, Ill., agrees, saying, "The safety industry is slowly moving towards e-commerce. Adoption rates have been slow, but you have to keep in mind that the Internet brings with it a shift in mindset. Grainger has customers who have been coming to our branches for over 30 years to buy their MRO supplies. They know the people behind the counter. They have developed relationships with them over the years."

Although corporate purchasing on the internet has been sporadic, Meister says the trend is growing. Colonial's Web site was initially developed in response to a request from Ford Motor Co. to purchase online. "Since then we have adapted that Web site to the general public, and we have two large clients purchasing over the internet."

In five years, Meister says that use of e-commerce in the safety industry will increase, but at a slower rate than use in other industries.

Kellie Hoffmeister, owner and president of milwaukee-based Panda Communications, a safety industry marketing and technology firm, agrees by saying, "The economic dip has extended the forecast for when this shift will take effect. The change is costly on both sides: for the end user and the distributor."

Distributors: Then and Now
Moving to e-commerce has been a challenge for safety equipment distributors, as well. Hoffmeister says, "Because most safety distributors are small- to medium-sized organizations without information technology departments, they were unsure of their needs. Some of them had a friend who could quickly get them up and running, but most distributors were finding that their websites weren't justifying cost."

Hoffmeister says that the large successful e-commerce sites have spent millions of dollars in development, but technology is becoming smarter and less expensive. Although it has been getting easier to determine return on investment (ROI), Hoffmeister does not counsel distributors to focus on ROI when developing e-commerce sites, but to look at investment in the Web as a marketing decision. She explains, "In many cases, distributors are driven to implement e-business initiatives because a large customer requires this capability of all of its distributors.

The customer has decided how and when the distributor can sell to them through various methods including portals. Distributors need to compete and be ready to service their customers on these sites, their own sites and other buying sites as determined directly by their customers.

"It is clear that end users are still learning what e-business means. Sometimes all they really want is a way to send an order over the Internet, in which case a CD-ROM or PDF file may serve their needs. The distributor needs to learn to become a marketing IT liaison between their customers and the technology that is required to meet the need."

Obstacles to e-commerce implementation have been importing content into the e-commerce package and maintenance of the site. Panda Communications developed the V-Cat 1.0 Panda E-Catalog Solution to help distributors set up e-commerce sites, implement content, CD-ROM catalogs and printed catalogs. Panda also will help with the integration process.

Grainger.com is also looking to the future of e-commerce. Although the site has attracted increasing numbers of users since its launch in 1996, the next step is to bring in new e-commerce customers. The company plansa to evaluate new technology and enhance site offerings.

E-comerce in the safety industry is an area to watch. Safety equipment distributors will continue to enhance sites and functions to provide efficient and useful capabilities that may allow safety managers and their employers to save time and money.

Betty Hintch is the editor of Compliance Magazine

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