Beyond technology

Before choosing a distribution software package, weigh the solution provider's customer service and support offerings.

by Randy Keith

Whether you’re a large, medium or small distributor, choosing a distribution software solution can be confusing, if not overwhelming. The main reason is the sheer number of choices. Now more than ever, there is a growing litany of so called “distribution” software packages that all seem to trumpet the latest technology needed to thrive in today’s e-distribution environment.

So, how do you choose the best software solution for your business? Certainly functionality and technology are key issues, but two of the most frequently under-evaluated criteria in purchasing a distribution software package are implementation service and ongoing support.

The quality of customer service and support operations varies widely from one solution provider to another. For some large distributors, working directly with an independent software vendor (ISV) is the preferred choice for their business. However, more and more companies, especially small and medium-size enterprises, find that having a relationship with a Value Add Reseller (VAR) provides distinct advantages including timely availability, industry expertise and personalized service.

Whether you license directly from an ISV or from a reseller, evaluating the scope and effectiveness of a solution provider’s support and service offerings will better enable you to choose the right solution. In today’s customer-driven markets, that choice can either enable or disable your company’s ability to create a competitive advantage.

The guidelines that follow will help your company choose the right solution provider. Remember, technology by itself is, at best, marginally useful. Effectively implementing and productively using technology is what determines success or failure in the application software business.

Local sales and support
One of the biggest advantages a solution provider can offer a distributor is local sales and support, which is one reason the VAR model is typically more competitive. While hundreds of resellers operate throughout the U.S. and Canada, only a fraction of them actually specialize in software solutions tailored for distributors. Some ISVs may have sales and support staff scattered throughout the U.S., although most are based in major metropolitan areas. Consider finding a VAR or an ISV with resources near your operations so a support professional can be at your facility when needed. This will also help you lower the costs normally associated with onsite support services.

Knowledge of your business and industry
The distribution software you select will impact almost every aspect of your operations, making it critical that the software is integrated into your business, not just installed. This makes it essential to find a solution provider that is knowledgeable about the distribution business and your particular industry. Be careful here: many ISVs that service the distribution marketplace through VARs sell accounting software packages with limited distribution functionality. Make sure you find a provider not only with a complete distribution-centric solution, but with experienced, industry-trained service and support resources.

Technical expertise and responsiveness
Certification is an important way to measure the technical expertise of a solution provider’s customer support operations. Find out if the support personnel are certified in the key technologies integral to the implementation, customization and continued maintenance of the selected software solution. You should also be able to easily learn about the components of those programs and the criteria for becoming certified. A good rule of thumb in determining the technical expertise of a solution provider’s support and services operations is to ask about the total number of resources supporting the particular product you are evaluating. If you find too many people wearing too many hats, be concerned.

Request the solution provider’s published guidelines for servicing their customers. This document should, at a minimum, outline normal support procedures, escalation protocol, response timing, rate structures and billing policies.

Timely access to support personnel — especially in the initial stages of using the new software — will help you maintain productivity and maximize system uptime. Find out if your vendor offers 24/7 support or determine what support is available after regular business hours, on weekends and in case of emergency. Also, check into the support tools used by the solution provider. Can they perform remote diagnostics and access your system for online troubleshooting? This can greatly reduce the time and expense involved in resolving problems.

Very few implementations come off without a hitch. However, the combination of trained personnel with industry-related experience, together with quality support tools and services will mitigate implementation snags and go a long way to ensuring the efficient, long-term maintenance of your system.

Training your users
A software solution can only be effective if employees understand how to use it and know how to leverage its features. What type training will the solution provider offer your users? Most businesses want the most comprehensive yet convenient training they can get. Do they offer classes onsite or only at their offices? Are the classes ongoing or just offered for the initial implementation of your system? Is technical training available?

Flexibility and convenience
Another key element to look for is the flexibility of a solution provider’s support model. Find out if they offer different support contracts. For instance, do you have the option to either pay an all-inclusive annual fee or a monthly bill? Generally, a mutually appealing support agreement with your partner is more effective and efficient than a pay-by-the-call approach. This is especially true during the implementation phase when a support agreement covers the frequent calls typically necessary during the early days of production. From a long-term perspective, annual contracts are the best choice for most businesses. Studies show that solution providers generally experience the highest level of customer satisfaction from customers that view annual support and maintenance costs as a vital component to the total cost of ownership (TCO) of any packaged software solution.

For a busy distributor, convenience may be the single most important attribute in evaluating a solution provider’s customer support offering. Is there a single point of contact or separate contacts depending upon the nature of the issue? Either approach may be acceptable. The key is clearly understanding the process of getting to the right person whether you’re dealing with a problem with the operating system, hardware platform, software application or other issues such as network administration. Many solution providers also sell hardware and support various third-party applications. In that case, all involved parties must agree upon an efficient process to access support.

Expanding the knowledge pool
Collaborating and exchanging information are key elements in building a company’s competitive advantage. Find out if your solution provider offers partner conferences and user groups. Both provide access to other companies in similar businesses and are forums to exchange best practices and real-world solutions for business challenges common to particular industries. They are also important sources of feedback for the software publisher and strongly influence future product releases. These conferences, together with newsletters, electronic information sharing and exclusive Web site access can provide distributors with invaluable, ongoing knowledge about enhanced use and support of any software application.

The right choice
In today’s business environment, the one-size-fits-all approach to implementing software does not work any longer. Simply put, software solutions need to flex in order to satisfy a company’s requirements, not the other way around. Choosing a solution provider with an adaptable, distribution-centric package, experienced customer service and ongoing training is the most practical approach to ensure long-term satisfaction and return on investment.

This article originally appeared in the July/August 2003 issue of Progressive Distributor. Copyright 2003.

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