Transcript Hello
SAQ
Presented by:
Delattre Therese
Groizard Carlos
Petersen Pablo
Content
What is SAQ?
B2C site
B2B solutions
Value creation & capture
Conclusion
2
Société des alcools du
Québec
(SAQ)
State-owned corporation responsible for
the trade of alcoholic beverages.
(Monopoly) since 1921
5500 employees
$2.4B annual sales(2003) ($540M net
income)
77% Consumers and 23% Permit Holders
Network:
– 30 Express, 290 Classiques, 66 Sélections and 2
Signature stores
– www.saq.com Web site VSOP System
– 6 SAQ Dépôt stores and 3 bulk wine points of sale.
3
Globalwinespirits.com
SAQ
Other Buyers
Public B2B
$$$
50% Mediagrif, 50% SAQ
$$$
International Wine Makers
B2C
Agents
Customers
B2B
+
+
Local Wine Makers
B2B
SAQ.COM
= Most purchases
Permit Holders
B2C
= <.2% of sales
4
Net income 1994-2004
Distribution of Selling Price
March 2000
5
How much goes to IT?
6
www.saq.com
Purpose of site
Age constraints
Delivery constraints
Prices are the same
7
8
B2C-Features
ABCs of Wine, ABCs of beer, ABCs of Spirits
Recipes, games, advice
Promotions
Links to Clubs & Associations
Extensive list of related sites links & Search engines
The Courrier vinicole publication (membership)
Groceries & Convenience Stores Section
Business-to-Entertainment section
– Gift Certificates
– Gift Shop
– Business receptions ideas
9
Measures of Success
Surveys & Customer complaints
9000 visits daily & growing
The Courrier vinicole publication
2000 members
SAQ e-Newsletter – 115,000 users
1500 orders/week @ 93% efficiency
10
Sites Comparison: B2C
SAQ.com
PAWine.com
Wine.com
Ownership
State owned
State owned
Private retailer
Products
3,000 labels
55 countries
Yes
Over 1000 wines
Yes
2500 labels
Domestic & Intl’s
Yes
Registration
Required
Required
Optional
Return policy
30 days
30 days
30 days
Customer
Service
Phone & e-mail
Phone & e-mail
On-line specialists
available
Delivery
service
Canada Post
3 options
3 – 5 days delivery
Free delivery >$50
On-line throughout
delivery
QC, Canada
UPS
2 days delivery
Free ship to liquor store of
choice in PA
UPS, FEDEX, DHL
7 - 10 days delivery
Max 24 bottles for 12
Sates
On-line
24 delay tracking
PA, USA
30 States in USA & Japan
• Wish list program
• e-Newsletter
• Courier Vinicole
• Outlets link
Wine connection program
(sampling)
• Wish list program
• e-Newsletter
• Party planner
E-catalogue
Order tracking
Market
Special
features
11
12
Business to Business
One private (SAQ-B2B) and the other
one public (Global Wines and Spirits
– GWS).
Globalwinespirits.com
–
–
–
–
–
–
5 languages
Call for tenders
Spot market place
Catalogues
Private extranets
File management/conversion
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SAQ-B2B.com
A private B2B transactional portal
owned and operated by the SAQ’s
e-Commerce Division
No membership fees, product list or
per-transaction fees to pay
SAQ is the only buyer on the portal
The SAQ online saves time, effort and
money (purchasing, shipping, and receiving)
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SAQ-B2B.com
(con’t)
The only equipment required is a
computer and Internet access
Highest industry standards for
security, boasting data encryption,
back-up support systems and firewalls
Easy-to-use functions
(call for tenders,
logistics mgt, doc sharing, freight forwarders, and
shipment tracking)
15
The questions of added Value
How does SAQ add value to its
core business through its web
site?
How is the value created
captured ?
– By SAQ
– By Suppliers
– By Customers
– By Taxpayers
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How can a wine retailer
add value on-line
Value added
Knowledge base
Category search
Personalization
Exchange forums
B2C
Up-stream B2B
Down-stream B2B
SAQ
Yes
Yes
No
No
Yes
Yes
No
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Benefits for SAQ of going
electronic
Characteristics
of the Internet
Reach
Flexibility and ease
to use
Personalization
Interactivity
Asynchronous
communication
E-Commerce
transactions
B2B
SAQ application
benefits
Restricted to QC
Benefits customers (no
impact on growth)
Potential not exploited
Forums not available
E-mail support provided
Optional to customers
and compulsory to
suppliers
Limited to suppliers
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Creation of value
Reduction of transaction costs (relative low
importance)
Accessibility of knowledge base to
customers
– Products
– Prices
– Retail stores data
Convenience of home deliveries to
customers
Certainty of product availability at retail
stores
Electronic transactions with suppliers (B2B)
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Increased process efficiencies due
to systems integration throughout
the Supply Chain
On line E-Commerce transactions
linked to SAQ’s ERP system
Suppliers’ integration via:
– B2B portal (transactional via EDI)
– Global Wine & Spirits portal
PRP (Planned Replenishment
Model) to be implemented
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How is the created value
being captured?
By SAQ
– Enhancements achieved through
site don’t play as a differentiating
factor
– Cost reductions obtained not even
quantified
– Market: Captured and limited to QC
• Growth of market in Quebec not a
government priority
• Limited cannibalization from outlets
• Promotion of site self restricted
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How is the created value
being captured?
By SAQ’s suppliers
– Increased efficiency through
electronic transactions
– Improved logistics
– Access to on-line sales information
(overnight updates)
– Close communication on
promotional activities (through
agents)
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How is the created value
being captured?
By SAQ’s customers
– Access to knowledge base and
specialized consulting services
– On-line ordering convenience
– Home delivery service (flexible
service optional)
– Access to on-line information on
inventories at outlets
– 17/5 Call center (complementary
info.)
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How is the created value
being captured?
By taxpayers (as stakeholders)
– Transparency: On-line access to all
information
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Conclusion
Small part of a larger supply chain
integration strategy
Some products are not easily or
desirably sold online
The SAQ is using the web technology
to complement its service to the
consumer and to the suppliers
Whatever time is saved from buying
online is time to be used to savor the
wine!
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THANKS !
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