Less than two years ago, executives at Alcan Inc., a metal products manufacturer, realized the competition had seized the initiative in e-commerce capabilities. Something had to be done.
Alcan quickly formulated an e-commerce strategy and implemented several initiatives to revamp its existing Web presence.
Using a Net architecture, the company added more personalization and functionality to the site. It included an employee benefits section, along with a logistics site and an e-message board.
It installed user content management features into new brand templates, pushing the responsibility of updating portions of the site to the appropriate managers, which eliminated bottlenecks in the IT department.
“Each business unit now has its own Web coordinator,” says Wilton Foster, manager of e-commerce, corporate systems, for Alcan. “It shifts the burden of keeping the site fresh out to the business end user.”
The company also added a 24/7 help desk for the benefit of employees who need to update the site, and for customers, as well.
“We never want to be in a situation where they are not able to get ahold of us,” says Foster.
With inventory for sale on the Web site, Alcan customers have stated they will increase purchase volume by an estimated 5 million to 10 million pounds, just in one business group. The company has seen benefits from the e-commerce initiatives including inventory cost reduction, improved employee communication and an enhanced brand alignment.
The results have been impressive.
The Alcan Recycling Group had been handling about 9,000 loads per year before moving to a Web-based load tendering system in March 2002. It now processes approximately 25,000 loads with no additional staff.
The company had similar results at its Terre Haute facility. When the Web-based tendering system was implemented, the facility saved 15 hours a week in overtime paid to administration personnel, saving more than $17,000 per year.
While some of the savings are measurable, other benefits are less defined.
“Our e-commerce initiatives have given us a base of information to use to reduce the number of vendors,” says Foster. “It has also let us eliminate some labor costs.”
The company has also used the new initiatives to start bringing all IT projects under one unified platform.
Foster says there are legacy systems still in place, but everything done from here on out will be on the same platform as everything else. How to reach: Alcan, (440) 423-6600
