MSC Industrial Direct Transforming with Information Technology

MSC Industrial Direct
Transforming with
Information
Technology
MSC Industrial Direct
Leading Supplier of Maintenance, Repair and
Operations (“MRO”) Supplies
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Founded as Sid Tool Co. in 1941, public since 1995
Historically strong organic growth company
$140 Billion MRO Market in the U.S.
Highly fragmented industry
Top 50 MRO Suppliers have <30% market share
150,000 players in the U.S.
Strong focus on metalworking
MSC Industrial Direct
An Integrated, Low-Cost
MRO Solution
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One call does it all / Big Book
MSCdirect.com
Over 600,000 SKUs with 99% fill rate
Same day shipment guaranteed
99.9% shipping accuracy
Four strategically located, expandable distribution
centers in the United States plus 1 in the UK
• 320,000 customers with 550,000 unique buyers
MSC Business Strategy
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Prompt response and same-day shipping
Broad selection of in-stock products
Name brand and generic products
Targeted direct-mail marketing
Superior, value-added customer service
Solutions-based sales force
Commitment to technical innovation
Grids and Clouds
Pre-Power Grid
Pre-Cloud
Your Company
Y o u r C o m p a n y
Post-Power Grid
The
Power
Utilities
The Grid
Your
Company
Your
Company
The
Cloud
The
Computing
Utilities
Software development and
delivery models also evolving
• Software “standardization” allows us to
assemble applications (business functionality),
regardless of where the computing resource
resides or what the technology is based on:
– Web Services
– Software as a service
– Service oriented architecture
If IT is a commodity,
where do I innovate?
• Use outsourcing where
functions have been
commoditized or standardized
• Refocus your IT resources on
the places across the value
chain where they can create
competitive advantage
Customers
Sales/
Marketing
Back Office
Suppliers
Warehouse Transportation
How is MSC innovating with IT?
Creating a network of connections
MSC
Systems
MSC
Suppliers
Web
Services
Internet
The Channel-less
Customer Experience
The Personal
Area Network
Our 24x7
salesperson on
the shop floor
MSCdirect.com
MSC Field Sales
MSC Vending
How else MSC innovating with IT?
Building a rock solid data foundation
• Background:
– The Big Book has been the center of MSC's
universe for the last 70 years…
… but winning a sale via the catalog is very
different from winning a sale in the digital world
– Compelling Thought: in the next 10 years, will more
customers use print or the web to conduct business?
• Our Goals:
– To be viewed as #1 Industrial Distributor on the web
– More than 50% revenue via the on-line channel
Building a rock solid
data foundation
• Our Approach:
– Create a new and unified search experience
– Re-build our e-commerce capabilities
– Create world class product data
Foundation: install
PIM/MDM solution
•Governance
•Workflow &
Distribution of work
•Supplier Portal
•Standardization
Apply “science” to
the data
•Taxonomy and
schema
•Understand how
our customers
think?
Clean and enhance
the data
–Normalize
–Populate
–Cross Reference
–Images, etc…
Some things to remember
1. This is hard to do
a) Its not a project, it’s ongoing business
process
b) It takes dedicated resources and dollars
2. Start by building a strong foundation
3. Focus on customers
4. Don’t be constrained by outdated
thinking