Order Fulfillment

Many multichannel merchants focus on how they can lower operating costs when they consider outsourcing certain tasks. But when you outsource operations, you also outsource the investment. Sounds obvious, but maybe the magnitude isn’t all that clear until you’re faced with replacing an order-management system, moving into a new fulfillment space or upgrading your Web site. When outsourcing your investment, you don’t have to invest in those upgrades as your business grows and changes. Let’s look at some examples that show the size of these investments. * Order-management systems. Software as a service (SaaS) can free up a potential investment of $25,000 for an

Say what you will about this wonderful trade we call the catalog/multichannel business, but whichever way you spin it, you can’t go very far if you’re unprofitable. That’s why above all else — the marketing, the merchandising, the creative, the e-commerce, etc. — we’re most interested in helping our readers make more money. So we bring you our annual binge of tactics and tips extracted from all of this year’s issues of Catalog Success, our weekly e-newsletter Idea Factory and our biweekly idea exchange e-newsletter, The Corner View. Our editorial staff went through every article we’ve produced this year to give you a nice,

A common thread to all warehouse operations is the quest to manage expenses. The most critical and manageable expense item on your P&L statement is labor. Managing labor efficiently will generate immediate results in your quest to manage expenses. This begins with capturing daily man-hours used by department or activity in categories such as receiving, put-away, replenishment, pick/pack/ship, inventory management, supervision, etc. Capturing the man-hours used can be done with sophisticated warehouse-management system software or a more manual approach. But no matter the method used, you must know how many man-hours are used each day, in each activity. Once you’ve successfully determined

Employ a Detailed Approach to Merchandise Analysis

Employ a Detailed Approach to Merchandise Analysis

From a “bottom up” view, catalog/multichannel marketers must consider every aspect of an item’s performance or life cycle to ensure every touchpoint to profitability is being considered properly. An item’s profitability is impacted by much more than simply demand and margin. I offer a top-down approach, which is extremely critical to the planning process. I also go to the opposite spectrum, however, and consider detail levels that often are overlooked when considering an item’s true profitability. If you hold your products to higher standards by factoring all their costs up front, you can gain greater profit to the bottom line. Let’s break down these

The rapid development of sophisticated technologies has been tantalizing. So much so that it’s been suggested companies can improve efficiency by replacing expensive, variable-cost human labor with incredibly efficient hardware and software, both fixed costs. Such promise has led to change in the call-center business, beginning with call-routing menus and leading to sophisticated, interactive voice recognition systems. Despite countless horror stories of customers lost in “promptland,” most of this technology has been developed with the best intentions. Yet numerous studies have shown this promise often has remained out of reach. A recent Aspect Contact Center Satisfaction Index survey found that 55 percent of customers

As a consultant, one of the things I love to do when touring a B-to-B catalog company is to take a look at the customer order just before it gets sealed. I usually make a point of doing it during the first tour of the operation. What I find usually astounds me.
Most often, standard marketing materials — a catalog, a flyer or two, maybe a thank-you card or survey — are tossed helter-skelter in the bottom of the box, covered by the items being ordered and the void fill of choice. Imagine what happens when customers open that box presuming, of course,

As has been its annual custom, B-to-B list firm MeritDirect’s annual co-op event in White Plains, N.Y. on July 12 was kicked off by a provocative and entertaining presentation by catalog veteran and futurist Don Libey. Having heard Don speak plenty of times in the past (and despite his frequent speaking appearances, rarely does he repeat a single concept, strategy or idea), I’ve long since learned how to filter through his motivational pep talk and the meat of what he delivers. While always entertaining, his shtick is always chockfull of meat, but it often looks beyond tomorrow. And after all, we all want to

Merchandise analysis is an ongoing process. Although most companies should schedule formal reviews at the end of each season, the key to profitability is staying on top of the metrics that drive any multichannel business. Postmortems, as many of these reviews have been labeled, have a negative connotation in many marketers’ minds, and as a result, often are sidestepped. I’ve found that changing them to “preseason kick off” reviews promotes an offensive approach to profitability that can be maintained throughout the season. Of course, each business can apply its own weight to the measures to make final decisions. As multichannel merchants say, “It’s all about