There are some buzz words in the 3PL/IT Solutions industry that our competition and customers are using: SaaS (Software-as-a-Service), BPO (Business Process Outsourcing), ERP (Enterprise Resource Planning), EDI (Electronic Data Interface), SCM (Supply Chain Management), MRP (material requirements planning). As a player in the 3PL space, we should be aware of these buzz words and what they mean to our clients. We’ll focus on one of these acronyms at a time, so they’re digestible.
Let’s focus on SaaS briefly.
We all know HP and Dell – companies that have historically sold hardware and installable software. Hardware has inherent issues that include having to update and manage instillations and components. When the software on a machine has problems or the machine breaks, the resources to fix these issues can be a costly and time-consuming process.
Let’s look at another example – companies like Webinar/Go to Meeting and Gmail/Google docs. These services are web-based software, or Software as a Service. You logon to a portal where your data is stored, managed and work executed in a virtual space.
SEKO has developed our suite of IT solutions to be Web-based SaaS applications. Our clients can access data from any place at any time, from anywhere. Hard copy software requires licenses and install time, the SEKO solutions are immediately accessible and usable from any PC or wireless device.
The benefits of using an SaaS application includes:
Scalability
Without having to buy larger versions of software, an on-demand outsourced solution will grow with the business changes.
Predictability in cost
The SEKO SaaS model helps clients understand the actual costs. Not just of the solution, but their transportation as a whole. Our solutions give clients access to real data, online.
Faster implementation time
Hosted by the SEKO IT team instead of by the client’s internal IT staff, implementations go from months to install an on-premise software solution, to weeks with an SaaS solution.
Updates are quick and inexpensive
The SEKO IT team is continually working to improve, update, and scale our suite of solutions. These updates are made automatically, without clients having to buy upgrade packages and pay for expensive IT resources.
Gives small and mid-size businesses access to sophisticated technology
The small to medium size businesses we know and work with generally don’t have the resources to invest in best-in-class technologies. The SEKO solution gives these businesses access to the same sophisticated application built to handle the business needs of a Fortune 100 company.
Invest capital in core competency and outsource IT functions
Our IT solution customers can invest capital in their core functions instead of IT.
MySEKO is an example of an SaaS application that is developed to the specifications of each customer. We all know that MySEKO is accessible through a web based portal where users are granted access through a simple login and password. Within the MySEKO application, clients can also access supplier management, TMS, WMS, and storefront tools. These software solutions streamline the tracking process, reduce supply chain inefficiencies, drive down costs, and allow for advanced analysis on data captured within the application to customize KPI’s (Key Performance Indicators). We offer this accessibility to our customers with the click of a mouse.
Selling SaaS
When you are selling SaaS, you are selling a long term relationship with your customer. You are not just selling a product. It is important to put emphasis on this commitment showing the dedication to ensuring that the solutions we provide are maintained and updated. The benefits of SaaS are easy to understand for a customer. Most updates are automatic and the cost is minimal compared to purchasing software. All data is stored safely off site allowing for access and usage on any computer at any time. And for you, it is a win/win. Once the sale has been made, your customer is “locked” into a SEKO services with generated revenue attached.
Thank you,
Tom Madzy
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