January 12, 2005, 12:00 AM

Web-based sourcing shortens retailers’ order lead times, analyst says

Web-based sourcing systems are helping retailers reduce the 6- to 9-month period it often takes to design, order and receive private label goods, an analyst says.

Paul Demery

Managing Editor, B2B E-commerce

 

Web-based sourcing systems are helping retailers take weeks or months out of the 6- to 9-month period it often takes to design, order and receive private label goods, AMR Research Inc. retail industry analyst Alexi Sarnevitz says.

“We’re seeing people getting 20% improvements in production and lead times,” he says. “Retailers no longer have to deal with given lead times from suppliers. They are taking a cumbersome process with limited visibility and multiple versions of the truth, and replacing it with a clear process flow, shared online calendar dates, and knowing at what stage every sourced item is in throughout the design and development process.”

And this is just the beginning, Sarnevitz says. As retailers gain more visibility and control in sourcing, they can hold suppliers more accountable and benefit from an ongoing process of learning how to streamline the entire sourcing process. “They’re taking the existing process, adding visibility and accountability to it, then rethinking the process,” he says.

 

 

Comments

Sign In to Make a Comment

Comments are moderated by Internet Retailer and can be removed.

Not a member? Signup for free today!

Advertisement

Advertisement

Advertisement

Relevant Commentary

FPO

Jason Squardo / Mobile Commerce

Five tips for achieving high mobile search rankings

Searches on mobile devices will soon exceed those on computers, Google says. Retailers that keep ...

FPO

Sergio Pereira / B2B E-Commerce

Quill turns to its B2B customers for new ideas

Coming in April is a new section of Quill.com that will let customers and Quill ...

Advertisement