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Lowering Solar Supply Chain Costs through an eCommerce Marketplace
GTM Webinar January 24, 2017 2:00pm EST
A Member of the Broker Exchange Network
Who This Webinar Is For? This webinar is for all members of the supply chain that want to reduce costs and increase profits this year:
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Distributors
Installers
EPCs
Project Developers
O&M Asset Managers
Why This Topic is Important?
While hardware costs continue to drop, soft costs still represent nearly two-thirds of solar costs today in commercial, residential, and utility sector
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Today’s Supply Chain Operates in Independent Silos Little to no visibility of inventory, availability and costs
Panel Manufacturer
Inverter Manufacturer
BOS Manufacturer
Distributor
Developer EPC/Installer
Panel Manufacturer
Inverter Manufacturer
BOS Manufacturer
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This Inflates Soft Costs
This inflates soft costs including indirect costs, transaction costs, supply-chain costs, installation costs, and customer acquisition costs
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Centralized eCommerce Solar Marketplaces Emerge
This Brings:
Distributors
Developers
EPC/Installers
Panel Manufacturers
Centralized Marketplace
BOS Manufacturers
Inverter Manufacturers
New market opportunities
Market visibility in inventory availability and pricing
New efficiencies
Cost reductions
What You’ll Learn
What areas of your operation to focus on to receive the largest benefits and soft cost reductions
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In this webinar you’ll learn:
How solar eCommerce marketplaces operate and how to take advantage of them to increase the efficiency and value of your supply-chain operations
How inclusion of refurbished, decommissioned, excess, and legacy inventory into the supply value chain will affect the solar market and your business in the coming year
INTRODUCTION
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Who We Are: Your Hosts
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Mr. Bluford has more than 30 years of professional marketing and business development experience and more than five years experience in the solar industry. He has successfully guided several firms from start-up to acquisition. Mr. Bluford is responsible for the strategic vision and development of EnergyBin LLC’s solar ecommerce platform and its membership. Prior to EnergyBin.com, he served as founder and Sr. Vice President of Marketing & Sales of Sunora Energy Solutions, a solar EPC firm responsible for the implementation of more than 76 MW of solar projects from small distributed generation to large-scale utility projects. In addition to business development for Sunora’s EPC services, Mr. Bluford was responsible for creation and development of a new business unit and introduction of a new residential solar product. Mr. Bluford has spearheaded and managed startup operations for several technology firms with vertical solutions spanning the energy, manufacturing, financial, medical and other industries. He has expertise in strategic business planning, partnership-relationship development and product positioning. He has also guided companies through the process of pre-acquisition and business development to successful acquisition. In addition, Mr. Bluford is experienced in post-acquisition operations. He has functional expertise in mobile marketing, social media, business intelligence, business process optimization and workflow, and financial, credit union and transaction-intensive industries. He holds a B.S. in Marketing from Oklahoma State University and is a seasoned speaker. He has received several major industry awards for his outstanding efforts in business.
Webinar Details/Housekeeping Webinar is 60 minutes total
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Stick around to the end and we will give you access to the handouts and other materials
We will be covering the three topics mentioned earlier: 1. How solar eCommerce marketplaces operate and how to take advantage of them to
increase the efficiency and value of your supply-chain operations 2. What areas of your operation to focus on to receive the largest benefits and soft cost
reductions 3. How inclusion of refurbished, decommissioned, excess, and legacy inventory into the
supply value chain will affect the solar market and your business in the coming year
There will be a Q&A session at the end. We’ll be answering all questions at the end. You can enter them in the chat window.
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EnergyBin is an online B2B platform specifically designed for the U.S. solar marketplace that facilitates the brokering, movement, and commerce of
PV system components
Refurbished components
Vintage replacement parts
New and excess inventory DOE SunShot Grant Awardee 2016
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About Us Broker Exchange Network is the leader in the IT and IC marketplaces
Broker Exchange Network, LLC (BEN) provides closed, members' only marketplaces for buying and selling IT and IC parts; complete e-commerce solutions for technology firms; and an open discussion forum for computer parts resellers Sister sites include BrokerBin.com, which is typically searched 160,000 times a day, ICBin and ITtrader.com
1 Financially Secure BEN, founded in Rochester, MN in 2001, is a financially secure, privately-held global network of technology companies
3 Reliable Infrastructure Consistent up time, on-site generators, an off-site Disaster Recovery center and a global data center network.
2 Proven Model Currently maintains a global network of 3,415 active companies with 13,973 total users who represent 20,148,851 computer & component parts EnergyBin, LLC is an
independent start up affiliated with the Broker Exchange Network, LLC
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DECISION TO EXPAND INTO THE PV SOLAR MARKET
Why PV Solar, Why Now
RESEARCH INDICATED THE SOLAR INDUSTRY WAS READY Our research indicated that there was a significant need for centralized, supply-chain communication and that an after market was emerging in the industry.
After 13 years and successful implementations in multiple verticals, BEN decided on Solar
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Commoditization Paves the Path to Mainstream Adoption
Manufacturers Controlled IT Component Pricing
and Market Forces
BrokerBin is Launched
Despite growing demand for access to components in varying lot sizes, competition was limited, as was access to and availability of a wide range of components in small and large lots.
A Thriving After Market Emerged
• A Brokerage Community Formed
• Refurbish Companies Emerged
• 3rd Party Warrantee & Repair Companies Emerged
• Component cost reduction of 20% began to occur immediately
IT brokerage firms were starting to emerge and the need for refurbished and vintage products was surfacing but there wasn’t a tool, platform, or community to support this need
Access Barriers Are Removed and Costs
Reduced by 20% - 70%
Today, the same IT components industry has a large community of vetted IT brokers, distributors, resellers, and wholesalers who are able to sell into markets that demand new, refurbished, and used goods and buyers who also have a market through which they can sell excess inventory
The development of this marketplace has increased competition which has:
Driven Down Costs Encouraged and facilitated the creation of diversified products that better meet the demands of the IT market.
After market plays an important part in the product lifecycle for reducing costs, adoption, and support
Prior 2001 2001
2016
WHAT ARE ECOMMERCE MARKET PLACES & HOW TO TAKE
ADVANTAGE OF THEM
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Today’s Solar Supply-Chain
Other Possible Buyers
Manufacturer
Manufacturer
What are eCommerce Marketplaces
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Distributor
Manufacturer
Manufacturer
Distributor EPC/Installer
Developer
O&M Asset Manager
eCommerce Marketplace
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SUPPLY CHAIN EFFICIENCES
REDUCE COSTS AND INCREASE
VALUE
Market Intelligence Data warehouse provides market intelligence not available in the past
Centralized Access Centralized access to components levelizes access and adds new procurement efficiencies such as requesting items through a broadcast
Component Accessibility Everyone in the supply chain has access to components
Supply-Chain Visibility Supply-chain inefficiencies are eliminated by providing pricing and availability information to all
Centralized ecommerce marketplaces eliminate inefficiencies and barriers in the supply-chain
Community
Centralized Community Eliminates Barriers
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WHAT AREAS TO FOCUS ON TO RECEIVE THE LARGEST
BENEFITS & COST REDUCTIONS
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New Opportunities from eCommerce Marketplaces eCommerce marketplaces bring several opportunities:
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Cost Reductions
Increased Supply-Chain Efficiencies
Greater Customer
Service and Satisfaction
New Solar Markets
Reducing Cost with eCommerce Marketplaces
• Supply Chain Cost • Indirect Corporate Costs • Transaction Costs • Customer Acquisition • PII Labor • Installation Labor • Profit • Sales Tax • Equipment
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Reducing Cost with eCommerce Marketplaces
• Supply Chain Cost • Indirect Corporate Costs • Transaction Costs • Customer Acquisition • PII Labor • Installation Labor • Profit • Sales Tax • Equipment
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Inventory can be located and purchased by
location reducing shipping cost
Reducing Cost with eCommerce Marketplaces
• Supply Chain Cost • Indirect Corporate Costs • Transaction Costs • Customer Acquisition • PII Labor • Installation Labor • Profit • Sales Tax • Equipment
Reduces sourcing manpower
Ability to recoup cost
of excess and stranded inventory
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Reducing Cost with eCommerce Marketplaces
• Supply Chain Cost • Indirect Corporate Costs • Transaction Costs • Customer Acquisition • PII Labor • Installation Labor • Profit • Sales Tax • Equipment
Inventory will now have residual value
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Asset recovery costs are reduced
because warehousing of inventory is not
needed
Risk premiums should be reduced
Reducing Cost with eCommerce Marketplaces
• Supply Chain Cost • Indirect Corporate Costs • Transaction Costs • Customer Acquisition • PII Labor • Installation Labor • Profit • Sales Tax • Equipment
Cuts time out of the buy cycle with
micro-visibility
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Reduced costs provide for pricing flexibility which reduces customer acquisition costs
Reducing Cost with eCommerce Marketplaces
• Supply Chain Cost • Indirect Corporate Costs • Transaction Costs • Customer Acquisition • PII Labor • Installation Labor • Profit • Sales Tax • Equipment
Future enhancements may include
standard permitting and interconnection
design repository and access to local experts
and inspectors
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Reducing Cost with eCommerce Marketplaces
• Supply Chain Cost • Indirect Corporate Costs • Transaction Costs • Customer Acquisition • PII Labor • Installation Labor • Profit • Sales Tax • Equipment
Sourcing equipment by location
reduces time in truck and
sourcing costs
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Reducing Cost with eCommerce Marketplaces
• Supply Chain Cost • Indirect Corporate Costs • Transaction Costs • Customer Acquisition • PII Labor • Installation Labor • Profit • Sales Tax • Equipment
Reduction of costs provides the opportunity for increased profit without
increasing pricing
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Reducing Cost with eCommerce Marketplaces
• Supply Chain Cost • Indirect Corporate Costs • Transaction Costs • Customer Acquisition • PII Labor • Installation Labor • Profit • Sales Tax • Equipment
Since sales tax is a ratio of
price, reduced costs allow for reduced sales taxes for the
customer
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Reducing Cost with eCommerce Marketplaces
• Supply Chain Cost • Indirect Corporate Costs • Transaction Costs • Customer Acquisition • PII Labor • Installation Labor • Profit • Sales Tax • Equipment
Competition caused by price transparency
Reduced risk of volume purchase with
a market for excess inventory
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Other Opportunities
In addition to cost reductions eCommerce marketplaces provide other opportunities such as:
– Increased customer service and satisfaction:
• Speed of service • Price reduction
– Access to market intelligence • A centralized repository is now
available
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HOW AFTER MARKET INVENTORY WILL AFFECT YOUR BUSINESS
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How After Market Will Change the Industry
The emergence of solar ecommerce marketplaces will change the industry
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As with other industries this will bring about: – Brokerage firms – 3rd party warrantee companies – Equipment refurbishment firms
Refurbished, decommissioned, excess, and legacy inventory will now be introduced into the supply-chain
How After Market Will Change Your Business
You can take advantage of either buying or selling this equipment
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You can partner with other firms or branch out into the emerging off-shoot markets
SUMMARY
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Summary
eCommerce marketplaces are already here and are building in momentum
They provide lots of opportunity for all the players in the PV solar industry to reduce costs and increase
Where do you fit it?
How are you going to get involved?
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Q&A SESSION
To receive a copy of today’s handouts or for more information on eCommerce marketplaces or a demo of EnergyBin.com, contact:
Keith Bluford at [email protected] or Call 866.241.0639
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Contact Us EnergyBin headquarters and team contact information
866.241.0639
Our Office 32 7th Ave NE Rochester, Minnesota 55906-4632