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Home --> Case Studies --> A Leading Hardware Distributor Case study |
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a leading hardware distributor case study |
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ALHD is a young vibrant hardware distributor, with a focus on partnering with its vendors and customers. This approach has yielded tremendous benefits to the company. |
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| The Given |
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| At its inception, ALHD was yet another hardware dealer with no identity and no uniqueness. It was small, inadequately funded and understaffed. As a business it was destined to be doomed, or cling on to survival as a best option. |
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| Entrepreneurs being entrepreneurs, the owners resolved to take drastic steps. With a small retainer, they entered into a deal to create a trading portal - on revenue share or phased payments - with a development company. The aim was to create a subscriber based trading portal whereby sellers would come and list their items with prices; buyers would come because a 'marketplace' creates a competitive pricing environment. Since the product area is considered to be a "buyers' market", once the word got out that this was an active marketplace, sellers were lining up to subscribe. |
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| The Approach |
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| As was the preference, the trading portal was designed using PHP and MySQL. Buyers had a private area where they could log on and view their activities, the ratings of vendors; create wish-lists, etc. Sellers as well had their areas and could add/delete items, upload bulk items, create time-sensitive specials, etc. |
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| The Outcome |
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ALHD has created a thriving trading portal |
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ALHD is also a substantial participant as a vendor on the portal |
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Sellers and buyers have come together onto a marketplace that is encouraging more sellers to sign on and more buyers to source from |
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Based on the deal, the software developer has been paid in full upon having earned 200% of the originally quoted amount. |
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