Timberland Makes a Case for E-Commerce

Over the past few years, and after experiencing declining sales, Timberland has worked tirelessly to better align itself for future growth. In addition to acquiring brands, reducing SKUs and implementing systems to better integrate its complex enterprise, Timberland executed a B2B e-commerce strategy, which streamlined communications with its wholesale customers in the United States and Canada.

"Timberland was looking to increase its sales revenue, internal efficiencies and overall level of service to the customer, as well as gain competitive advantage by establishing a best-in-class B2B Web site," says Rebecca Conway, manager of PRO Technology Solutions for Timberland. Based in New Hampshire, Timberland sells footwear, apparel and accessories through both wholesale and retail channels, including its Web site, www.timberland.com.

The Technology Solution

In 2006, Timberland implemented iCongo's ICE3 suite of e-marketing and e-commerce systems to allow its wholesale customers and account executives to conduct their sell-side business processes online. "Timberland chose iCongo because it met the core business requirements better than its competitors; had experience in the footwear/apparel industry; and was cost competitive and offered lower total cost of ownership over a two- to three-year period," says Conway. The business-to-business application includes an online order entry system, product catalog, e-mail campaign manager and content management system. To support the business's international requirements, the solution is currently offered in two languages (English and French) to customers across the United States and Canada.

The Business Impact

The platform as a whole has a strong sales and marketing orientation. Timberland's wholesale customers and account executives place orders online, but they can also access product images and descriptions, product availability, order statuses, shipment tracking, UPC codes, sales promotions, customer-specific pricing and more. According to Conway, among some of the most compelling features and benefits are the following:

> Product inventory is available and updated hourly online, which ensures customers and account executives always have access to timely information. This cuts down on the frequency of orders cancelling due to out-of-stock product because a customer can simply use the online catalog to find a replacement. "Customer service reps and account executives can also focus on more value-added initiatives because they're freed up from having to enter orders," adds Conway.

> Timberland can send e-mail blasts and customize the home page banners to communicate information such as: new product lines, top-selling styles, special promotions and new Web site features. The e-mail campaign manager and content-management tool help ensure that customers are better connected to Timberland than ever before.

> Products are turning faster because customers can place orders at their convenience, including evenings and weekends, when Timberland customer service has gone home. Orders are being input on Saturday mornings that would have traditionally waited until Monday, resulting in fewer out-of-stock situations for the retailer and faster turns for everyone. "Better service can also be achieved because customers can have their inventory and ordering needs met 24x7," says Conway.

The Business Results

Timberland conducted an online survey in November 2008 among existing users of the Web site (wholesale customers only, no account executives). The survey results confirmed that Timberland's business-to-business Web site is helping it to achieve the service, efficiency and revenue benefits it originally identified.

Regarding service, 95 percent of respondents said the site allows them to serve their own customers even better, and 91 percent said the B2B site has enhanced their impression of Timberland.

Revenue-related benefits stem from the 64 percent of respondents that said the Web site has caused them to do more business with Timberland than they would have otherwise. Additionally, 92 percent said less time passes between when they need a product and when they place an order, because of the site, which leads to faster turns for Timberland.

From an efficiency standpoint, 48 percent and 31 percent of respondents respectively said they are calling their customer service representative and account executive less frequently than they were before using the Web site, while 76 percent said they are more informed about Timberland products because of the Web site.

Since 2006, Conway says that Timberland added new features such as drop-shipping, UPC downloads, shipment tracking, and a virtual catalog, among others. Additionally, the company will be posting account summaries and invoices online in the next couple of months.

"We hope that future enhancements will include online payment, a high-resolution image library, and more," closes Conway.