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Hanover Township, Pa., Software Firm Makes Order Fulfillment More Efficient

Posted on: Wednesday, 5 November 2003, 06:00 CST

Nov. 5--Synchronoss has found success -- and profits -- creating order-fulfillment software used by the large business customers of major telecommunications companies such as Sprint and AT&T Wireless.

But now the software maker, of Hanover Township, Northampton County, is marketing its products for use by mass market consumers of several large telecom companies. And it is knocking on the doors of major cable companies and other communications companies in the hopes of gaining their automated order-fulfillment business.

Synchronoss serves the giants of the telecom world: AT&T, AT&T Wireless, Sprint and MCI. Through these four major clients, the company handles the telecom needs of about 50 client firms, including General Electric, BP Amoco and Dell.

The company's work is invisible. Customers do not know another company is handling their orders when they visit the web sites of AT&T Wireless or MCI. But from the moment an AT&T or Sprint customer decides to buy a new cell phone or other telecommunications equipment, Synchronoss takes over.

Synchronoss coordinates credit checks, phone number verification, shipping and account activation.

Telecommunications orders from business customers can be complex. A company like Home Depot, an AT&T client, uses Synchronoss' software to order and manage circuits and land-line phones for its stores and wireless devices for its employees. The software automates much of the account management for employee wireless devices.

But the move to the consumer side of the business also presents challenges for Synchronoss.

It is unlikely that Home Depot personnel, for example, will order 2,000 cell phones on Christmas Eve, said Stephen G. Waldis, president of Synchronoss. But handling the orders for the consumer side of AT&T Wireless does open Synchronoss up to such a scenario.

The explosion of wireless devices also ups the ante because of the sheer number of cell phones and other handheld devices a company may need for its employees. But it also promises to increase Synchronoss' bottom line.

The software's ability to manage wireless device accounts encourages companies to order ever more cell phones and personal digital assistants because it removes much of the hassle of keeping track of them.

And the software makes ordering over the Web fairly painless. That's good news for Synchronoss' big accounts which, like many other companies, want their customers to do more of their buying over the Web.

Now, most major telecommunications providers are receiving 3 to 4 percent of their orders over the Web, Waldis said. The target number, he said, is 20 to 40 percent in the next two years.

"They are trying to drive sales to the Web," said Waldis who once worked as salesman for AT&T.

Kent Mathy, senior vice president of enterprise solutions at AT&T Wireless, would not confirm Waldis' numbers but said increasing Internet orders is a "major thrust" for AT&T Wireless.

Synchronoss handles 2,000 orders a day just on AT&T Wireless' Web site. In total, about 6,000 orders pass through Synchronoss' hands each day. That number could rise considerably as Synchronoss takes on more traditional consumer business. The company is already handling AT&T Wireless' consumer accounts and has approached cable giants Comcast and Cablevision about signing up.

Waldis said the software drives costs down and cuts order time in half or more. Before, orders were done almost completely manually which required three to five days for a phone to be delivered. Usually, return calls were required. Now, an order can be processed within 24 hours.

Before turning to Synchronoss, AT&T Wireless developed its own system for handling large enterprise, or business, orders but without sustained success.

"We developed the tools from scratch but they were custom applications," Mathy said. "Whenever the customer asked for something unique, we were challenged to offer it in a timely manner."

Now AT&T Wireless can accommodate its larger business customers much faster, Mathy said in a telephone interview last month.

The automated software also allows companies to launch new products more easily because the system is in place to handle a large influx of orders over the Web.

Synchronoss' help desk is on the go 24 hours a day.

"We make such a commitment to our customers," Waldis said. "This is our life blood."

Synchronoss' clients have noticed. Waldis even accompanies sales people for AT&T Wireless on customer calls.

"They become an extension of the organization," Mathy said of Synchronoss.

Synchronoss is in growth mode, though Waldis doesn't want to over-expand because he doesn't want to lay anyone off. Founded in 2000, the company had about $17 million in revenue in 2002 and has projected revenue of $30 million in 2003. Waldis said the company is profitable but declined to give earnings figures.

The company employs 100 people full time and 100 on a temporary basis.

Synchronoss keeps part of its work force flexible, and not permanent, because the need for call-center personnel fluctuates with the product promotions of its major customers. If AT&T Wireless launches a one-day promotion to give away a free cell phone, for example, the number of orders jumps and more Synchronoss employees need to be on hand to make sure nothing goes awry.

Synchronoss wants to expand its sales and marketing department and has its eye on opening more regional offices. The company recently opened sales offices in Redmond, Wash. and Branchburg, N.J.

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(c) 2003, The Morning Call, Allentown, Pa. Distributed by Knight Ridder/Tribune Business News.

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