Published on 01-Apr-2011
Validated on 05 Nov 2012
"The solution has enabled us not only to operate more efficiently and reduce costs, but also to gain market share versus our toughest competitor." - OfficeMax
Customer:
OfficeMax
Industry:
Retail
Deployment country:
Mexico
Solution:
Business Analytics, Business Intelligence, Smart Work, Smarter Analytics, Smarter Commerce, Smarter Planet
Smarter Planet:
Smarter Solutions for Retail, Smarter Supply Chain
IBM Business Partner:
Grupo Assa
Overview
OfficeMax is both a business-to-business and retail office products distributor employing more than 30,000 associates. The company has two segments: OfficeMax Contract and OfficeMax Retail. Through its OfficeMax Contract division, the company sells a broad line of office supplies such as paper, technology products and furniture directly to large and small companies in the United States, Canada, Australia and New Zealand. Its retail division operates in the United States, Puerto Rico, the Virgin Islands and Mexico, with more than 1,000 stores in the United States and Mexico alone.
Business need:
Office Max needed to reclaim market share in Mexico for its e-commerce operations using data analysis and a stronger B2B infrastructure that could process orders and fill rates with 100 percent accuracy.
Solution:
With a new e-commerce solution, Office Max is engaging new business customers from across the country and providing them with greater efficiency and convenience in ordering their office supplies. This component is supported by greater business analytics, providing the entire company with insights and visibility into the company’s B2B process—from its inventory of every pen and office chair to its tracking of customer service, order consolidation and shipping. Now, executives can quickly and easily spot trends or issues that will impact profitability.
Benefits:
· Increased B2B revenue from 15 to 25 percent of total company sales
· Reduced order-placement costs by US$400,000 on a year-to-year basis
· Realized a market-share gain of more than 10 percent versus its biggest competitor
Case Study
OfficeMax is both a business-to-business and retail office products distributor employing more than 30,000 associates. The company has two segments: OfficeMax Contract and OfficeMax Retail. Through its OfficeMax Contract division, the company sells a broad line of office supplies such as paper, technology products and furniture directly to large and small companies in the United States, Canada, Australia and New Zealand. Its retail division operates in the United States, Puerto Rico, the Virgin Islands and Mexico, with more than 1,000 stores in the United States and Mexico alone.
The Opportunity
Office Max needed to reclaim market share in Mexico for its e-commerce operations using data analysis and a stronger B2B infrastructure that could process orders and fill rates with 100 percent accuracy.
What Makes It Smarter
With a new e-commerce solution, Office Max is engaging new business customers from across the country and providing them with greater efficiency and convenience in ordering their office supplies. This component is supported by greater business analytics, providing the entire company with insights and visibility into the company’s B2B process—from its inventory of every pen and office chair to its tracking of customer service, order consolidation and shipping. Now, executives can quickly and easily spot trends or issues that will impact profitability. By analyzing consumption patterns, for example, Office Max can develop up-sell and cross-sell strategies to further drive revenues and provide a value add to create customer loyalty. Creating efficiencies in its order-placement process has enabled the office retailer to reduce operating costs and recapture its market from a competitor.
Real Business Results
· Increased B2B revenue from 15 to 25 percent of total company sales
· Reduced order-placement costs by US$400,000 on a year-to-year basis
· Realized a market-share gain of more than 10 percent versus its biggest competitor
For more information
Please contact your IBM sales representative or IBM Business Partner.
Visit us at: ibm.com/retail
To learn more about the customer name visit: www.officemax.com
Products and services used
IBM products and services that were used in this case study.
Software:
Cognos Business Intelligence, WebSphere Commerce Enterprise
Legal Information
© Copyright IBM Corporation 2011 IBM Corporation 1 New Orchard Road Armonk, NY 10504 U.S.A. Produced in the United States March 2011 All Rights Reserved IBM, the IBM logo, ibm.com, Cognos and WebSphere are trademarks of International Business Machines Corporation, registered in many jurisdictions worldwide. A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at ibm.com/legal/copytrade.shtml Other company, product or service names may be trademarks or service marks of others. The information contained in this documentation is provided for informational purposes only. While efforts were made to verify the completeness and accuracy of the information contained in this documentation, it is provided “as is” without warranty of any kind, express or implied. In addition, this information is based on IBM’s current product plans and strategy, which are subject to change by IBM without notice. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, this documentation or any other documentation. Nothing contained in this documentation is intended to, nor shall have the effect of, creating any warranties or representations from IBM (or its suppliers or licensors), or altering the terms and conditions of the applicable license agreement governing the use of IBM software.